Karnov Group AB (KAR) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everyone to Carniv Group's earnings conference, where we will present the outcome of the first quarter of 2025. Please go to slide two. I'm Pontus Budelsson, President and CEO of the company. With me, I have our CFO, Magnus Hansson, and our Head of Investor Relations, Erik Berggren. Magnus and I will present the outcome of the quarter using a few slides and then we'll open up for questions. With that said, let's get started with the presentation of the first quarter. Please go to slide three. In Q1, we achieved solid growth, strong cash flow and improved margins. Customers are adopting our AI assistant. Usage of the AI assistant is increasing steadily and our customers become significantly more efficient. Net sales grew to 673 million SEK in the quarter. The organic growth was driven by strong online sales in Region North, including customer upgrades to our AI solutions, while offline sales in Region South were weak. The adjusted EBITDA margin improved to 26%, which is an improvement of more than three percentage points compared to Q1 previous year, a result of achieved synergies. Thanks to our strong operating cash flow in the quarter, leverage has improved to 2.4 times, well below our financial target. Let's move over to slide four. Our customers are typically renewing their annual online subscriptions primarily during the fourth and first quarter every year, generating strong cash flow for Kano Group. We are pleased with the strong cash flow in the first quarter. During Q4 to Q1, we have generated an adjusted free cash flow of 455 million SEK compared to 265 million SEK during the same quarter's previous year. Thanks to our synergy efforts, our margin are improving quarter by quarter. In Q1, we reached 26% in adjusted EBITDA margin. Our acceleration initia...