Sinch AB : Year-end report January - December 2023

USA - English

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Feb 15, 2024, 01:58 ET

STOCKHOLM, Feb. 15, 2024 /PRNewswire/ -- October – December 2023

Net sales increased by 2 percent to SEK 7,532m (7,361).
Gross profit increased by 5 percent to SEK 2,526m (2,416).
EBITDA rose by 3 percent to SEK 818m (791).
Adjusted EBITDA¹ increased by 4 percent to SEK 996m (960).
Profit after tax for the quarter amounted to SEK 145m (-226).
Basic earnings per share were SEK 0.17 (-0.27) and diluted earnings per share were SEK 0.17 (-0.27).
Cash flow from operating activities amounted to SEK 727m (973).

January – December 2023

Net sales increased by 4 percent to SEK 28,745m (27,722).
Gross profit increased by 8 percent to SEK 9,542m (8,810).
EBITDA rose by 11 percent to SEK 3,074m (2,774).
Adjusted EBITDA increased by 16 percent to SEK 3,637m (3,124).
Profit after tax for the year was SEK 42m (-4,943).
Basic earnings per share were SEK 0.05 (-6.03) and diluted earnings per share were SEK 0.05 (-6.03).
Cash flow from operating activities amounted to SEK 1,788m (2,508).

"The fourth quarter marks a robust end to the year with consistently healthy margins, strong cash generation and improved growth in revenue and gross profit." – Laurinda Pang, CEO

Significant events during the quarter

Sinch announced a new operating model to accelerate its organic growth. See the press release for more information.
Research firm Omdia named Sinch a Leader in the Omdia Universe: CPaaS Platform Providers.
Sinch has committed to short-term and long-term emission reductions in line with science-based net zero and the Science Based Targets initiative (SBTi). By joining SBTi, Sinch will ensure that its climate action is aligned with the latest science aimed at limiting the global temperature rise to 1.5 °C.
Credit facilities of SEK 1,500m were extended in December by one year. The new maturity date is February 2025.

Significant events earlier this year

In January 2023, credit facilities of SEK 6,500m and USD 110m were extended by one year and will mature in February 2026.
Sinch launched "Operator Connect for Partners" on 23 March, which makes it possible for service providers and other partners to offer voice calling services via Microsoft Teams.
Laurinda Pang took the helm as the new CEO on 17 April.
Sinch was positioned as a leading CPaaS provider during the year in the IDC MarketScape report and in Gartner's first Magic Quadrant report for CPaaS.
The cost reduction program announced in mid-2022 achieved the stated savings targets in Q2 2023 and was completed in Q3.

Important events after the end of the year

The new organization and management team went operational on 1 January 2024.
In January, credit facilities that amounted to SEK 6,500m and USD 110m at the end of the year were extended by one year. The new maturity date is February 2027.

1) Adjusted EBITDA is reported to clarify performance in underlying operations. See Note 2

Invitation to webcast and phone conference

Sinch will present the interim report in a webcast and phone conference on Thursday, 15 February at 14:00 CET. Watch the presentation at investors.sinch.com/webcast.
Follow the link below to register to participate via phone conference: https://conference.financialhearings.com/teleconference/?id=5009898.
After you register, you will be given a phone number and conference ID to log into the conference.

For additional information, please contact:

Ola Elmeland, Investor Relations
+46 72 143 34 59
[email protected]

Thomas Heath, Chief Strategy Officer and Head of Investor Relations
+46 72 245 50 55
[email protected]

Roshan Saldanha, Chief Financial Officer
+46 73 660 24 19
[email protected]

About Sinch

Sinch helps businesses engage with their customers through cloud services for customer communications. More than 150,000 customers, including many of the biggest tech companies in the world, use the Sinch Customer Communications Cloud and the secure and reliable Sinch Supernet for messaging, voice calls and email. Sinch has delivered profitable growth since the company was founded in 2008. The company is headquartered in Stockholm, Sweden and its stock is traded on Nasdaq Stockholm: XSTO:SINCH.

Note: Sinch AB (publ) is required to publish the information in this interim report pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was released for publication by the contact person above on 15 February 2024 at 07:30 CET.

This report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply.

The following files are available for download:

https://mb.cision.com/Main/22250/3928960/2605935.pdf

Year end report_Sinch_2023Q4_ENG