Slide 1: Q1 2024 Results Presentation
Q1 2024 Results | Presentation Per Ottosson | CEO Fredrik Törgren | CFO Friday, April 26, 2024
Slide 2: Presenters
Presenters Per Ottosson | CEO Has +25 years of experience from leading positions in the software and SaaS industry Most recently spent 10 years with IPSoft (Amelia) - US based vendor of enterprise AI solutions - as Chief Revenue Officer M.Sc. Business & Administration, Stockholm School of Economics
Slide 3: Business Update
ARTIFICIAL SOLUTIONS Business Update ULE
Slide 4: In a Nutshell
ASAI in a 99% NLU Accuracy 98% OP-EX Cost Saving Nutshell Teneo can help you get Cut your AI operational over 99% accuracy in expenses in AI by up to understanding and 98% by integrating addressing customer Teneo's Generative AI FOUNDED IN 2001. HQ: STOCKHOLM needs with our TLML. into your ecosystem
Slide 5: The SaaS Journey
The SaaS Journey Product New logo Main use Reference Growth in Tech New rebuilt to First Partnering hunting case stories built usage at Partnering Management SaaS Customers TechMahindra, starts Cash productized and existing with Azure, CGI, Valcon Team Teneo; PS Live Flow (OpenQuestion) published. c
Slide 6: Positioned to Cater to Large-scale Enterprises
Positioned to Cater to Large-scale Enterprises Partnerships with Hyperscalers … provides access to blue chip enterprise customers Three leading tech stacks dominate the global software market, “Conversational AI has improved Customer Recovery creating significant network benefits connected services
Slide 7: Welcome to Customer Care
Welcome to Customer Care LISTEN & CHOOSE CAREFULLY 62% Traditional IVRS’ used by 62% of all Enterprises in the U.S.
Slide 8: Customer Delight
ARTIFICIAL SOLUTIONS Customer Delight 1-800-MICROSOFT Teneo OpenQuestion is a cutting- edge Al IVR tat enables contact center transformation with one simple SaaS module integration. Teneo will initially route to the correct human and, overtime, be taught to automatically answer complex questions lik
Slide 9: Accuracy Is The Reason
ARTIFICIAL, SOLUTIONS Accuracy Is The Reason BANKING77 Platform F1 Teneo 0.95 Amazon Lex 0.89 Cognigy 0.80 Microsoft CLU 0.70 IBM Watson 0.81 Google DialogFlow 0.74
Slide 10: gecholog
gecholog applications gecholog Efficiency / Optimization / Transparency / Risk management
Slide 11: Why gecholog?
Why gecholog? > Gecholog.ai is optimized for processing language data. > Create customized micro-services for any business process or specific requirement. > Fully configurable following your governance requirements
Slide 12: Key Investment Highlights
Key Investment Highlights A prominent player, with strong industrial backing, and the Largest I references in a high growth AI market. II NRR of 141% - testament to Customer Satisfaction Highly scalable business model with gross margins on fully III onboarded customers approaching 95% Quality of off
Slide 13: The Market is on Fire - on the Investment side
The Market is on Fire - on the Investment side 1. Competition is heating up with new entrants. 2. LLMs slow down adoption 3. Teneo.ai is the only solution with live large scale references 4. Investors are scrambling 5. Some established players under threat
Slide 14: Status Update: Strategic Review by Board of Directors
Strategic Review by Board of Directors REVIEW ONGOING Status Update ▪ The board of directors of Artificial Solutions announced on October 26, 2023, that it initiates a review of strategic alternatives to maximize shareholder value, because of the rapidly evolving market landscape in the field where
Slide 15: Financials
ARTIFICIAL SOLUTIONS Financials
Slide 16: Operations & Numbers
+141% 67M +40% NRR in Q1 2024 SEK ARR in Growth in SaaS API Q1 2024 Calls YoY 1.6BSEK 79% 166% Valuation Patents Gross Margin Subscription Rate Q1 2024 & IP Rights on Rights Issue Operations & Numbers
Slide 17: Q1 2024 Operational Highlights
Q1 2024 Operational Highlights ▪ Record Quarter – +40 % YoY growth in SaaS API call volumes and +32 % SaaS ARR growth ▪ Expansion of our solution to Japan with our Global American Tech company customer ▪ A number of renewal agreements on SaaS and on License signed. New logo win in April 24 - Medhelp
Slide 18: Key Financial Highlights In Q1 2024
Key Financial Highlights In Q1 2024 GROWTH IN RECURRING REVENUES AND IMPROVED EBITDA Key Metrics % SaaS* ▪ Recurring revenues amounted to 17.0 MSEK (13.4), +27% ▪ SaaS ARR amounted to 37.2 (28.3) MSEK, + 32% 54% ▪ Total ARR amounted to 66.9 MSEK (53.7), +25% ▪ Net Revenue Retention 141% (134) 1 ▪ Ne
Slide 19: Net Revenue Retention
Net Revenue Retention EXCELLENT +141% NRR (%) – Driven by Growth in Existing Accounts 145% 141% 141% 137% 134% Q1 ´23 Q2 ´23 Q3 ´23 Q4 ´23 Q1 ´24
Slide 20: SAAS Business Model Growth
SAAS Business Model Growth SAAS API CALL VOLUMES - UP YoY SaaS API Calls Quarterly Average (million) + 40% YoY 24 23 18 18 17 13 11 9 4 2 Q4´21 Q1´22 Q2´22 Q3´22 Q4´22 Q1´23 Q2´23 Q3´23 Q4´23 Q1´24 SaaS API call volumes *API Calls Active Customers above Q3 ´23 levels
Slide 21: ARR Growth
ARR Growth AVERAGE ARR – A NEW WAY TO MEASURE SaaS and Total ARR Quarterly Average (MSEK) + 32% SaaS YoY 65.0 66.9 63.0 58.2 53.7 47.9 SaaS ARR +32% YoY 43.4 37.2 Total ARR +25% YoY 35.1 36.3 34.4 29.8 31.0 28.3 22.5 24.9 17.8 12.0 Q1´22 Q2´22 Q3´22 Q4´22 Q1´23 Q2´23 Q3´23 Q4´23 Q1´24 SaaS ARR ARR
Slide 22: Growth In Recurring Revenues & ARR YoY
Growth In Recurring Revenues & ARR YoY GROWTH YoY YoY Recurring Revenues, SaaS and Total ARR (MSEK) 20 66.9 63.5 65 53.7 17 55 15 45.3 45 13 7.7 35 10 6.4 25 9.3 15 7.1 5 5 Q1´23 Q1´24 Rec Rev SaaS Rec Rev Non-SaaS Rec Rev (R12 ) ARR
Slide 23: API Calls driver of Revenue Growth
API Calls driver of Revenue Growth Record Quarter on SaaS API Calls Revenues Recurring Revenues by Type (MSEK) API Call Revenues Q1´24 2.6 4.2 5.1 5.1 17.0 Q4´23 2.7 4.0 5.3 3.8 15.7 Q3´23 2.7 3.7 4.9 4.9 16.2 Q2´23 2.6 3.6 4.5 3.9 14.6 Q1´23 2.6 3.7 3.8 3.3 13.4 0 2 4 6 8 10 12 14 16 18 Non SaaS_Re
Slide 24: Gross Margin Growth
Gross Margin Growth Revenue grows faster than costs Improved Gross Margin % with Higher API Call Volumes 77% 77% 79% 79% 75% 71% 72% 66% 63% 56% Q1 ´23 Q2 ´23 Q3 ´23 Q4 ´23 Q1 ´24 Inc. Commissions Exc. Commissions
Slide 25: OPEX RunRate Q1 2024
OPEX RunRate Q1 2024 Reduction in Costs YoY Annual OPEX Run Rate* MSEK ▪ Monthly OPEX(*) in Q1 2024 of 9.1 MSEK (9.0 MSEK Q4 2023) ▪ OPEX(*) run rate of 116 MSEK in Q1 2023 vs. 110 MSEK Q1 2024 116 113 ▪ Reported OPEX decrease visible YoY following simplification actions and 109 110 108 headcount re
Slide 26: Cash Position
CASH POSITION CASH ADJUSTED Cash Position Mar 31, 2024 – Adjusted 29 MSEK ▪ March 31, 2024, cash and bank position amounted to 24.6 MSEK 4.3 ▪ Adjustments following the quarter end: - Cash received from collected ARs in April of 4.3 MSEK 24.6 ▪ Adjusted cash & bank position would have amounted to ap
Slide 27: Q&A
+141% 67M +40% NRR in Q1 2024 SEK ARR in Growth in SaaS API Q1 2024 Calls YoY Q&A 1.6BSEK 79% 166% Valuation Patents Gross Margin Subscription Rate & IP Rights on Rights Issue
Slide 28: Thank You!
Thank You! Per Ottosson | CEO Fredrik Törgren | CFO