BIMobject AB (BIM) Earnings Call Transcript

Hello, everyone. Good afternoon, and welcome to our presentation of the Q3 report. Thank you so much for joining us this afternoon. We are about to start. But before I present our panelists to you, I will say that we usually end these calls with a questionnaire session at the end of the call. So if you have questions for us, you can write them in the chat in the Zoom webinar or you can e-mail your questions to the e-mail address ir@bimobject.com, and we will pick them up at the end. But we'll start with our panelists. As usual, we are joined by our CEO, Niklas Agevik. Welcome, Niklas.

Thank you.

And we are also joined by Per Goransson, who's our CFO. Welcome, Per.

Thank you.

As usual, I'm your host. My name is Lisa. On the agenda today, -- we have a business update from Niklas, followed by some financial numbers from Per. And as I mentioned, we wrap this all up with a Q&A session. So with that said, Niklas, the floor is yours.

Great. Thank you so much, Lisa. And as Lisa mentioned, I'll give a brief overview of the quarter, and then I will give a bit of a strategic update where we are heading and what has happened in the last quarter and why we think that is taking us in the right direction. So the quarter in summary, in Q3, we continue to grow and we reduced our loss. Net sales grew 9% to SEK 44.4 million. That's 10% growth adjusted for currency. Recurring revenue grew 13% and is now 87% of net sales. ARR in constant currencies grew 11% to SEK 160.9 million. EBITDA improved by SEK 6 million to minus SEK 0.9 million. The reorganization that we announced earlier this year reached the cost effect that we wanted to get out of it, and we are now where we want to be with a much more efficient cost structure. In and just after the quarter, we added 3 new data partners in project software, and we started a pilot with a wholesale partner. Per will go through the numbers in a bit more details, but I thought I'll give a strategy update and why we think these partners are important. Yes. I mean as we said on previous calls, our vision is to be the source of truth for product data in the construction industry. We support manufacturers. They are our customers. We take the product data, we adapt it to whatever format they need and make sure that it's available in the right channels. It can end up at a contractor, a distributor or a project planning software as we've seen in this quarter. But the important thing for the manufacturer is that they don't have to deal with a very fragmented landscape with many different data requests that they have to respond to manually. Instead, they can come to us, we take the data once and we adapt it to whatever format is necessary. And the ultimate goal for them is, of course, to get specified more, be part of more projects and sell more of their products. And I do want to stress that this vision and we're talking about here. That's not something new. I mean we already are very well-positioned here. bimobject.com is already a leading destination site in the -- for architects and engineers where they go in and find BIM content. And adding more data partners and continue building on this is just continuing to doing what we already do but do it better and faster. And I mean the core value loop here, I mean, the reason why we believe it's so important to continue to add more partners is that -- I mean, this is really what powers our growth. When we get more partners, the platform becomes more valuable to more manufacturers. There's a bigger reason for them to join because their data ends up in more projects. And if we have more manufacturers and we have more data, more professionals and more companies and partners want to build upon our data. And when we get more partners, then, of course, we are back to the start where we are more attractive to more manufacturers. So this is the core loop that we want to continue to build and adding Plant, Nodon and Veriad in August, that continues to strengthen that. I also wanted to give a quick update that we went live with new data gathering capabilities as part of the new version of Prodikt. I think it was at the beginning of Q4, but still, it is something that we have been investing in throughout the year, but now it's out. We're testing it with the first partner, which is fantastic to see. And the capability that we've added now is that we allow a partner to upload a product list and request data about those products. They don't have to fill in any specific template. We can work with the data that they already have. They can export it directly from their PIM system. And regardless of how messy their data is, we can take it and we can process it, and we can match it to the right products and the right manufacturers. The capabilities right now are focused on climate data, but we quickly want to move to more data types. The other next step here is to allow manufacturers to join and provide their own data. We call that primary data. And thanks to the data gathering capabilities that we have, we make this a very easy process for them. When they come into the platform, we've already gathered a lot of the value if they have an EPD, if they have an article number, whatever document that they have, we read it, we process it, and we make sure that in the best-case scenario, all of the data is already there and all they have to do is verify it. And this has been a big problem for manufacturers in the past. They are very used to old difficult system to use where you have to manually adjust everything. So what we hear from the market is that this is a great service that makes it very easy for -- the result here is that at the end, our partners, they go from having data that we have gathered to getting data directly from manufacturer, which is the end goal. And that's data that they can trace all the way back to the source and the manufacturer publishes once and it reaches every partner. So we're continuing to build upon this loop, adding more data capabilities and making this easier for manufacturers. So with that said, I want to hand over to Per to give an update on the financials.

Thank you, Niklas. And I'll take you through the numbers in more detail. For the third quarter, total net sales were SEK 44.4 million, up 9% from SEK 40.7 million a year ago and 10% adjusted for currency. The growth comes from recurring revenue that grew 13% to SEK 38.7 million or 14% in constant currency. ARR in constant currency reached SEK 160.9 million. That's 11% up year-over-year. And behind that, we see higher average revenue per contract and lower churn in EMEA. And then there's also a good contribution and trend from wholesalers in Data Solutions. The total platform business stands for 89% of revenue in the quarter. Services was SEK 5.0 million compared with SEK 6.1 million last year, but up from SEK 4.5 million in the second quarter. On the cost side, operating costs were SEK 47.3 million, and that is down 7% from SEK 51.0 million a year ago. Other external costs fell from SEK 18.3 million to SEK 14.7 million and mainly because we use fewer external consultants. Personnel costs were flat at SEK 32.7 million, even though we were 13% fewer employees at the end of September compared to a year ago. Several things offset the lower headcount besides general salary inflation, it also relates to timing of new employees, such as the acquisition of GreenMetrica in August '25 and being only part of the quarter in previous year. And we also had a great vacation effect in 2025. Higher sales commissions in Q3 this year is also a component. Still, compared with earlier quarters this year, personnel costs are clearly lower, and that's partly the reorganization made in Q2, which has reached planned cost effect this quarter and partly it is the summer vacation effect quarter-over-quarter. Higher revenue and lower costs together lifted EBITDA by SEK 6 million to minus SEK 0.9 million compared with minus SEK 6.9 million a year ago. We also did that with less capitalized development work than last year. And also worth noting that operating cash flow improved in line with this by SEK 7.6 million compared with the same quarter last year. EBIT in the quarter was minus SEK 4.8 million compared with minus SEK 10.2 million and depreciation and amortization increased somewhat mainly due to acquisitions in August '25. With that, back to you, Niklas.

All right. Thank you, Per. Yes, to sum up this quarter then, we're growing with a smaller loss. We're building -- we're continuing to build towards our strategic direction. We are building a stronger and stronger position there. We have the new capability out to the market. So I think it's just continuing on the journey we're on, doing that faster and doing it better, adding more partners, getting more products in and bringing more manufacturers. So yes, with that, I hand over to Lisa, if there were any questions.