In This Article:
-
Revenue Growth: 4% year-over-year, with 3% organic growth.
-
Gross Profit Growth: 4% year-over-year, with 2% organic growth.
-
Gross Margin: 34%.
-
Adjusted EBITDA Margin: 13%.
-
Adjusted EBITDA Growth: 8% organic year-over-year.
-
Cash Conversion: 50% over the last 12 months.
-
Cash Flow from Operations: Negative SEK104 million, impacted by a temporary working capital increase of SEK370 million.
-
Net Debt to Adjusted EBITDA Ratio: Improved to 1.4 times from 2 times in Q1 2024.
-
Americas Organic Growth: 4% in net sales, 1% in gross profit.
-
EMEA Organic Growth: 7% in net sales, 3% in gross profit.
-
APAC Organic Growth: 4% decline in net sales, 5% growth in gross profit.
-
RCS Messages: Exceeded 600 million, a 50% increase from Q4 2024.
-
Email Volume: 165 billion emails delivered in Q1.
-
Enterprise Customer Growth: Increased by 5% year-over-year.
-
Self-Serve Gross Profit Growth: 13% year-over-year.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Sinch AB (CLCMF) reported a 4% year-over-year increase in net sales and gross profit, marking the third consecutive quarter of organic net sales growth.
-
The company achieved an adjusted EBITDA margin of 13%, in line with its midterm guidance, with an 8% organic increase in adjusted EBITDA year-over-year.
-
Sinch AB (CLCMF) launched new AI-related functionalities for Mailgun and Mailjet, and made RCS generally available in its Conversational API product, showcasing innovation in its product offerings.
-
The company's balance sheet strengthened, with a net debt to adjusted EBITDA ratio improving to 1.4 times, down from 2 times in Q1 2024, providing greater financial flexibility.
-
Sinch AB (CLCMF) experienced strong growth in partner-driven business, outperforming overall gross profit growth, and received industry recognition, including Adobe's Technology Partner of the Year award.
Negative Points
-
Cash flow from operations after investments was negative SEK104 million, impacted by a temporary working capital increase of SEK370 million.
-
The APAC region saw a 4% year-on-year organic decline in net sales, primarily due to a reduction of low-margin SMS revenue in India.
-
Gross margin in the EMEA region decreased slightly from 33% to 31%, affected by the timing of some project-based contracts.
-
Despite the growth in RCS messages, it remains a small portion of the overall SMS volume, contributing minimally to financials at this time.
-
The company faces challenges in maintaining margins for large email customers, as winning high-volume clients often requires sacrificing some margin.
