Slide 1: Q1 2023 Results | Presentation
Artificial Solutions® (SSME:ASAI) Q1 2023 Results | Presentation Per Ottosson, CEO and Fredrik Törgren, CFO Friday, April 28, 2023 1
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: Stellar growth momentum in market taking off
STELLAR GROWTH MOMENTUM IN MARKET TAKING OFF SaaS API Calls million per SaaS ARR (MSEK) + 134% month 243% 18.9 30.2 SaaS Growth rate numbers massively outperforming the projected market 12.9 growth rate projected 5.4 by Gartner @ 48% CAGR until 2031 Mar 22 Mar 23 Mar 22 Mar 23 3
Slide 4: Conversational AI done right = Better NPS + Cost Savings
Conversational AI done right= Better NPS + Cost Savings
Slide 5: Artificial Solutions Market
ARTIFICIAL SOLUTIONS MARKET TRANSFORMATIONAL MARKET SHIFT IN LINE WITH ARTIFICIAL SOLUTIONS’ OFFERING AND BUSINESS MODEL Contact Center Software Market to reach USD 165 Billion in market size by 2030, growing swiftly at a CAGR of 21% The global contact center software market size was worth USD 29.5
Slide 6: Artificial Solutions' core market at a glance
ARTIFICIAL SOLUTIONS’ CORE MARKET AT A GLANCE Significant potential on the global market for CAI in contact centers In the news USDbn Interactions, bn 48% Recently approved bill in CAGR Market automation Spain limits call center 50 47.0 70 wait time to 3 minutes Main driver of market growth 45 expec
Slide 7: Brief introduction to Artificial Solutions
BRIEF INTRODUCTION TO ARTIFICIAL SOLUTIONS Company overview Select blue chip customers Select partners • Founded in 2001, Artificial Solutions offers a cloud-based software for Conversational AI (CAI), enhancing customer experience, capacity and resource-efficiency • Its unique CAI platform named Te
Slide 8: OpenQuestion Teneo.ai
OpenQuestion Teneo.ai Launched in Q1 2023. The first solution on top of the SaaS platform Teneo.ai. OpenQuestion
Slide 9: Welcome to Customer Care
Welcome to Customer Care Listen & choose carefully
Slide 10: No longer. It's time for a change!
There is a new solution that starts outside in and works with your tech. The first implementations are done and are delivering millions of satisfied customer calls No longer. 90% of calls correctly routed in 90 days It’s time for a change! “Our Customer enquiry hotline will be considerably more prod
Slide 11: Traditional IVRs
Traditional IVRs Please pay attention, or get lost
Slide 12: Yes, your customers are frustrated
“Half of survey respondents felt to some extent that their Yes, your customers existing irreplaceable systems are frustrated… were holding them back…” (Source: ContactBabel - The 2022 US Contact Center Decision-Makers’ Guide) Proportion of self-service calls abandoned 2013 13% 2014 18% 2015 2016 21%
Slide 13: The Problem
The Problem Customers are frustrated and… Customer Experience is NOT great. ▪ Customer don’t understand how to maneuver the choices ▪ Large DTMF trees are frustrating – e.g.: ▪ Up to 25% of the calls routed to the wrong agent ”Nothing matches my problem” ▪ Customer smash the keys to be transferred t
Slide 14: The Solution
The Solution Improve Customer Experience Listen to your customers ▪ A single voice of the company to match your voice of the customer OpenQuestion is a secure and high- ▪ Re-imagine how you greet your clients performing SaaS product that integrates with your voice contact center to achieve Improve T
Slide 15: Q1 Operations and Numbers
teneo.ai Q1 Operations and Numbers
Slide 16: Q1 2023 Operational Highlights
Q1 2023 OPERATIONAL HIGHLIGHTS ▪ Launch of OpenQuestion, a new Voice and Conversational IVR Solution ▪ ChatGPT integration through Microsoft Azure Cognitive Services ▪ Teneo.ai launched – the offering website ▪ Successful closure of 96 MSEK rights issue ▪ First outbound call trials initiated ▪ SaaS
Slide 17: SaaS business model continues to grow
SAAS BUSINESS MODEL CONTINUES TO GROW | SAAS ARR UP YoY AND QoQ SaaS ARR (MSEK) + 134% YoY and +21% QoQ Total SaaS revenues +21% QoQ 30.2 25.1 SaaS API call revenues +46% QoQ 23.6 20.0 12.9 9.4 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 * ARR measured as SaaS recurring revenues generated from the Saa
Slide 18: SaaS business model continues to grow
SAAS BUSINESS MODEL CONTINUES TO GROW | SAAS ARR UP YoY AND QoQ SaaS API Calls* (million) + 243% YoY and +36% QoQ 18.9 13.8 11.4 9.3 5.4 2.9 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 *API Calls Active Customers 18
Slide 19: High operating leverage in our SaaS model
HIGH OPERATING LEVERAGE IN OUR SAAS MODEL | API CALLS KEY DRIVER OF OUR SAAS ARR GROWTH + 597% YoY & PROFITABILITY YoY SaaS ARR Growth split by Revenue Type QoQ SaaS ARR Growth split by Revenue Type API Calls 597% API Calls 46% Other 40% Other 3% Largest SaaS customer’s gross margin exceeds +90% gro
Slide 20: Growth in recurring revenues & ARR
GROWTH IN RECURRING REVENUES & ARR | RAPID GROWTH YoY AND QoQ Quarterly Recurring Revenues, SaaS and Total ARR (MSEK) Recurring Revenues + 53% 13.4 14.0 60.0 10.9 12.0 57.3 12.0 50.0 9.1 49.5 10.0 45.1 Total ARR +70% YoY 8.8 40.0 38.9 8.0 33.8 30.2 30.0 6.0 25.1 SaaS ARR +134% YoY 23.6 20.0 20.0 4.0
Slide 21: Key financial highlights in Q1 2023
KEY FINANCIAL HIGHLIGHTS IN Q1 2023 | STRONG GROWTH TRAJECTORY ON ALL SALES METRICS SaaS Recurring Revenues as % of Total Recurring Revenues Q1 2023 ▪ SaaS ARR amounted to 30.2 (12.9) MSEK, + 134% ▪ Total ARR amounted to 57.3 MSEK (33.8), +70% 53% ▪ Recurring revenues amounted to 13.4 MSEK (8.8), +
Slide 22: OPEX runrate Q1 2023
OPEX RUNRATE Q1 2023 | SIMPLIFICATION ACTIVITIES WILL LEAD TO LOWER COSTS IN Q2 2023 Annual OPEX Run Rate* MSEK ▪ OPEX(*) run rate of 116 MSEK in Q1 2023 vs. 121 MSEK Q4 22(**) ▪ Monthly OPEX(*) in Q1 2023 of 9.9 MSEK (10.1 121 MSEK Q4 22**) 116 ▪ Reported OPEX decrease visible from Q2 2023 from sim
Slide 23: Key investment highlights
KEY INVESTMENT HIGHLIGHTS A prominent player in a market growing at 48% CAGR with SaaS ARR growing 134% y-o-y Gross margins on fully onboarded customers approach 95% Technology tailored for enterprise solutions with blue chip customers in key industries Quality of offering paired with material switc
Slide 24: Artificial Solutions
ARTIFICIAL SOLUTIONS