Sinch AB (publ) (SINCH) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the Cinch Q1 report for 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Lorinda Pang and CFO Jonas Dahlberg. Please go ahead. Thanks very much. Hello, everybody. Appreciate you joining us here today. Let's quickly jump into things and move to slide two to look at the highlights for the quarter. I'm pleased to share that our first quarter results for 2025 demonstrate momentum across our key financial metrics and transformation initiatives. In Q1, we continue to deliver on our growth agenda with net sales and gross profit both increasing by 4% year over year. On an organic basis, this translates to 3% growth in net sales and 2% growth in gross profit. This marks our third consecutive quarter of organic net sales growth. We delivered organic growth and gross profit across all regions and all product categories, reflecting the improving execution in our business. Our performance metrics remain solid with a gross margin of 34% and an adjusted EBITDA margin of 13% in line with our midterm guidance range. Adjusted EBITDA increased organically by 8% year over year, driven by gross profit growth combined with reduced operating expenses, demonstrating our commitment to balancing efficiency with strategic investments. It also reflects meaningful progress on our transformation agenda across go-to-market, product integration, and operational excellence pillars. The efficiency measures implemented last year have not only successfully mitigated inflationary pressures, but are now yielding tangible operational improvements. This disciplined approach has s...