Interim report for January - March 2023

JANUARY – MARCH 2023
• Annual recurring revenue (ARR) amounted to SEK 213.2 (115.8) million, corresponding to an increase of 84
percent, of which 16 percent relates to organic growth and 68 percent acquired growth.
• Net sales amounted to SEK 47.463 (24.599) thousand, corresponding to an increase of 93 percent, of which 15
percent relates to organic growth and 78 percent acquired growth.
• EBITA amounted to SEK -10,175 (-22.429) thousand. Nonrecurring items affected EBITA with SEK – 3.104
thousand which related to transaction costs in connection with the acquisition of ARPU Management AB,
Strawbees AB and Kids MBA SAS during January 2023.
• Result before tax for the period amounted to SEK -22.187 (-25.182) thousand.
• Result after tax for the period amounted to SEK -20.311 (-24.610) thousand.
• Earnings per share amounted to SEK -0.81 (-1.39), before and after dilution.
• Cash flow from operating activities amounted to SEK 2.423 (-24.958) thousand.
• Net cash (-) / liability by the end of the period summarize to SEK -105,710 (-155,378) thousand.
• Cash and cash equivalents at the end of the period amount to SEK 116.319 (155.378) thousand.

SIGNIFICANT EVENTS DURING THE FIRST QUARTER 2023
• In January, the announced directed share issue was completed, resulting in a capital injection of approximately
70 million SEK before transaction costs, and the number of shares increased by 4,099,410.
• In January, all acquisitions, including ARPU Management AB, Strawbees AB, and Kids MBA SAS, which were
announced in December 2022, were finalized.

AFTER THE END OF THE PERIOD
• In May, it was announced that the board had appointed Jonas Mårtensson as the new CEO. Additionally, Anne-
Louise Wirén was appointed as the new Vice-CEO. Both individuals have previous experience within the Albert
Group and will assume their respective positions no later than September 1, 2023.

FOUNDER’S COMMENT
We can happily and proudly summarize the first quarter of the year, which was characterized by strong sales growth and clear steps towards profitability for the group, in line with the communicated strategy. We see a clear value that has been realized through our completed acquisitions, which have increased our exposure to the B2B market. The first and third quarters of the year are typically billing periods for schools and municipalities, which have had a strong impact on our cash flow, which has been positive at the group level during the quarter. Furthermore, we have appointed a solid and competent group management that prepares the company well for the future. The focus on profitable growth remains, which is evident in the quarter. EBITA amounted to -10.2 million SEK, which was an improvement of 45 percent compared to the previous year. Adjusted for one-time items related to acquisitions, amounted to -7.1 million SEK, which is an improvement of 69 percent compared to the previous year, where operational cost savings have been the major contributing factor to the positive development of the operating result.

Profitable growth through our own cash flow is a focus area for Albert. Operational efficiency is therefore high on the agenda and permeates the entire organization. The same applies to optimizing cash flow, where we maintain a high level of commitment to streamline working capital. The cash should drive the company towards profitability while also providing liquidity to support future growth opportunities that arise.

Net sales for the quarter amounted to 47.5 million SEK, which is an impressive growth increase of 93 percent compared to the same period last year, of which 15 percent is organic growth and 78 percent is contribution from acquisitions. Our Annual Recurring Revenue (ARR) now amounts to 213.2 million SEK, representing an 84 percent increase. All group companies are growing and performing according to plan, which is clear evidence that we have a solid market position while the demand from our customers in both B2B and B2C segments remains high.

Successful integration of our acquired businesses is key to solidifying and strengthening our position while being a necessity to achieve our full potential in these strategic investments. During the quarter, we initiated integration projects to ensure an efficient transition for these companies. The integration work is proceeding according to plan, and we are pleased to highlight Kids MBA (Holy Owly), which has already been well integrated in terms of internal governance, management, and marketing. We look forward with confidence to leveraging the strengths, expertise, products, and distribution power across the group's different companies to drive future growth and create additional value for customers, employees, and shareholders.

Throughout the quarter, we have been exploring synergies between all companies and operations, with a focus on quickly identifying opportunities for shared resources, technologies, and market knowledge. Revenue synergies between our B2B companies have been high on the integration agenda, and we have completed an initial market survey for potential cross-selling between Strawbees and Sumdog in the UK, with positive results. We are looking forward to continued integration and synergy work.

In parallel with all of the above, our team has been working hard throughout the quarter to continuously update all our apps and services with user interfaces, technology, and content to always be at the forefront of offering a high-quality user and learning experience. This has been done while successfully delivering an Easter campaign in the B2C business, maintaining low customer acquisition costs while achieving a high influx of new customers who converted into paying subscribers after Easter, during the first period of the second quarter. Furthermore, the launch of Bamse on the Jaramba platform has been successful and highly appreciated by our customers.

Looking ahead, we remain optimistic about our growth potential. We will continue to prioritize profitability, cash flow, and operational efficiency while executing and investing in opportunities that contribute to growth. At the same time, we have a steady focus on ongoing integration and synergy efforts to deliver high value for all our stakeholders and position ourselves well for future successes.

Finally, we would like to extend a big thank you to our dedicated employees, loyal customers, and especially our supportive shareholders for their continued support, trust, and engagement. We are confident that together we will achieve new milestones and reap new successes in our shared journey of democratizing knowledge through technology.

Link to the report
The report is attached to this press release and is available at: https://investors.hejalbert.se/uk/reports

Presentation of the report
Today at 09.00 CET, founders Arta Mandegari and Salman Eskandari as well as CFO Martin Dahlgren will hold a presentation of the report via webcast. Link: https://www.finwire.tv/webcast/albert/q1-2023/