Slide 1: Year-end report 2021
Year-end report 2021 24 February 2022
Slide 2: Contents
Contents 1 Introduction to Albert 2 Q4 summary and events 3 Q4 financials 4 Events in 2022 5 Summary 6 Q&A
Slide 3: Today's speakers
Introduction to Albert Today’s speakers Arta Mandegari Salman Eskandari Martin Dahlgren CEO / Co-founder Dep CEO / Co-founder Head of Finance • Serial entrepreneur, • Management consulting • 7 years experience from previous Co-founder of background from finance and accounting, Tesenso, Qvido and Tri
Slide 4: Our vision is to give every child in Europe a custom learning experience
Introduction to Albert Our vision is to give every child in Europe a custom learning experience 4
Slide 5: Started with math, moving into a one-stop-shop for kids' learning
Introduction to Albert Started with math, moving into a one-stop-shop for kids’ learning Albert at a glance Albert is a leading app-based EdTech Leading ~78k 90m platform for children 3-16 years old with a vision to give every child in Europe a custom learning experience Nordic EdTech B2C player pay
Slide 6: Contents
Contents 1 Introduction to Albert 2 Q4 summary and events 3 Q4 financials 4 Events in 2022 5 Summary 6 Q&A
Slide 7: Q4 in brief
Q4 summary and events Q4 in brief • Continued focus on growth – net sales +119% (all organic), ARR +136% • Launch in UK – a key market going forward • Consolidating the European EdTech market – 2 acquisitions closed • Launch of new platform for kids 3-9 • …and additional strategic progress after yea
Slide 8: Geographical expansion – UK
Q4 summary and events Geographical expansion – UK • Following an evaluation phase carried out in Q3, Albert was launched in the UK in October • The UK is a key market going in Albert’s growth journey; attractive conversion rates among users while providing many M&A opportunities • Acquisition of Sum
Slide 9: Product expansion – New platform
Q4 summary and events Product expansion – New platform • Albert Junior launched in Sweden in November; collecting all content for children 3-9 years in one single app • Initial use shows increased product retention rate among customers, as well as more customers opting for Standard and PLUS subscrip
Slide 10: Two acquisitions strengthening our offering to improve LTV/CAC further
Two acquisitions strengthening our Q4 summary and events offering to improve LTV/CAC further ✓ STEM with maths, physics & biology ✓ Entry to UK for ages 10-16 ✓ 4-5 000 paying subscribers ✓ Great basis for localization ✓ Great basis for localization ✓ Launch in UK Q1 22’ ✓ Pre-school offering (2-5)
Slide 11: Contents
Contents 1 Introduction to Albert 2 Q4 summary and events 3 Q4 financials 4 Events in 2022 5 Summary 6 Q&A
Slide 12: Annual Recurring Revenue – Growth on both metrics
Q4 financials Annual Recurring Revenue – Growth on both metrics +136% ARR SEKm Comments on Q4 2021 • Growth in both paying subscribers and ARPPU • Slight negative effect of ARPPU in the end of the period due to acquired subscribers using Jaramba • Growth primarily driven outside of Sweden 12
Slide 13: Net sales – Continued strong growth
Q4 financials Net sales – Continued strong growth Comments on Q4 2021 +119% • Growth in net sales reached 119% in Q4 Net sales 2021 compared to Q4 2020, which all SEKm 18.5 growth is organic 17.5 • Growth primarily driven outside of Sweden 15.4 11.1 ~12 9.5 8.5 ~51 3.1 2.8 2.1 2.2 1.7 1.5 Q119 Q219
Slide 14: Overview of financials
Q4 financials Overview of financials SEKm Q4-2021 Q4-2020 12M-2021 12M-2020 YoY growth 2020-21 Comments on Q4 2021 Financial metrics Q4-Q4 12M-12M • Growth in net sales reached 119% in Q4 2021 compared to Q4 2020 and 162% for Net sales 18.5 8.5 62.6 29.9 119% 162% the twelve-month period Adjusted gr
Slide 15: Capitalised R&D expenses decreased in relation to Net sales
Q4 financials Capitalised R&D expenses decreased in relation to Net sales SEKm Q4-2021 Q4-2020 Comments on Q4 2021 Financial metrics • Increase of capitalised R&D during the period compared to previous period in 2021. This is driven Net sales 18.5 8.5 of development of new products launched during 2
Slide 16: Contents
Contents 1 Introduction to Albert 2 Q4 summary and events 3 Q4 financials 4 Events in 2022 5 Summary 6 Q&A
Slide 17: Strategic progress in early 2022
Events in 2022 Strategic progress in early 2022 Albert Teen launched in the UK Albert English launched in relevant markets • Albert Teen targets youth 10-16 years • English is a core subject in markets outside the UK • One single platform with mathematics, physics and biology using content from acqu
Slide 18: Acquisition of Sumdog
Events in 2022 Acquisition of Sumdog About Sumdog • +12 years history in the UK market • High-quality content with complete curriculum coverage developed by teachers and educational experts • Used by 15% of schools in the UK B2B market characteristics • Lower revenues per paying users compared to B2
Slide 19: Albert + Sumdog = a step towards European leadership
Events in 2022 Albert + Sumdog = a step towards European leadership Sumdog financial profile 2021 Exciting move to the B2B market • ARR GBP 2.6 million • Strengthens position in the UK • Gross profit 2.2 million • Gross margin 88% • Revenue retention rate 91% • B2B offering focused on teachers; comp
Slide 20: Contents
Contents 1 Introduction to Albert 2 Q4 summary and events 3 Q4 financials 4 Events in 2022 5 Summary 6 Q&A
Slide 21: Financial targets
Summary Financial targets Albert targets to grow net sales on average by more than 50 percent per year Growth in the medium term, of which organic growth will constitute the majority, and to achieve net sales exceeding SEK 500 million for the full year 2025 Profitability Albert targets an EBITA marg
Slide 22: Delivery since IPO
Summary Delivery since IPO To consolidate the European EdTech market is a top priority and was one of the main reasons for the IPO in 2021 • New market entry in UK • New platforms and subjects launched • 3 acquisitions carried out since IPO; Stairway Learning, Ampd/Jaramba and Sumdog • Including Sum
Slide 23: Takeaways
Summary Takeaways Continued focus on growth Moving from several apps to one platform UK is a key market (but more markets to come) Execution of M&A agenda 23
Slide 24: Contents
Contents 1 Introduction to Albert 2 Q4 summary and events 3 Q4 financials 4 Events in 2022 5 Summary 6 Q&A
Slide 25: Q&A
Q&A