October–December 2022
- Net sales increased by 41 percent to SEK 7,361m (5,207).
- Gross profit increased by 79 percent to SEK 2,416m (1,348).
- EBITDA rose by 140 percent to SEK 791m (330).
- Adjusted EBITDA1 increased by 104 percent to SEK 960m (471).
- The loss after tax for the quarter was SEK -226m (453).
- Basic earnings per share were SEK -0.27 (0.60) and diluted earnings per share were SEK -0.27 (0.59).
- Cash flow from operating activities amounted to SEK 973m (472).
January–December 2022
- Net sales increased by 71 percent to SEK 27,722m (16,177).
- Gross profit increased by 124 percent to SEK 8,810m (3,933).
- EBITDA rose by 234 percent to SEK 2,774m (831).
- Adjusted EBITDA1 increased by 136 percent to SEK 3,124m (1,322).
- Profit was reduced by a non-cash impairment of goodwill of SEK -5,097m and Sinch is reporting a loss after tax for the year of SEK -4,943m (908).
- Basic earnings per share were SEK -6.03 (1.29) and diluted earnings per share were SEK -5.95 (1.26).
- Cash flow from operating activities amounted to SEK 2,508m (329).
“As we sum up the year, we see marked improvements in both cost control and cash flow”
– Johan Hedberg, President and Chief Executive Officer (interim)
Significant events during the quarter
- On 14 October, Sinch announced that Sean O’Neal had been appointed as the new President of Business Unit SMB and that Brett Scorza had been appointed as the new President of Business Unit Voice. The reorganization of Business Unit Applications to focus the company’s investments on Conversational Messaging was also announced at that time.
- Also on 14 October, Sinch provided further details about the previously communicated cost reduction program. The program is to achieve total gross savings of at least SEK 300m on an annual basis by means of reduced consultancy costs, lowered non-personnel related expenses and reductions in force. About 150 people will be affected by the workforce reduction. See page 7 for more information.
- Sinch informed the market of a goodwill impairment of SEK 5,000m on 20 October and announced preliminary results for the third quarter of 2022.
- On 3 November, Business Unit SMB launched an Early Access Program to the MessageMedia product, which has been integrated with BigCommerce, a leading open ecommerce platform.
- Sinch announced on 18 November that Josh Odom would become the new President of Business Unit Developer & Email effective 1 January 2023.
Other significant events earlier in the year
- Sinch announced on 3 February that the company will be organized into business units: Enterprise & Messaging, Voice, Developer & Email, Applications and SMB. Sinch’s management team was expanded at that time.
- The board of directors decided on 10 February to execute a non-cash issue of 25,500,000 shares to the sellers of Pathwire.
- The board decided in Q2 to execute the previously communicated issue of 10,803,010 new shares to the sellers of MessageMedia and the second non-cash issue of 25,500,000 shares to the sellers of Pathwire.
- Sinch announced on 11 July that reassessment of reserves for accrued traffic costs would reduce Q2 results by SEK 162m.
- Oscar Werner stepped down from his role as CEO on 20 July and Sinch co-founder Johan Hedberg was appointed interim CEO.
- Sinch launched a cost reduction program on 21 July in conjunction with the Q2 report.
- On 29 September, Sinch informed the market that Neqst D2 and Johan Hedberg, interim CEO, had together acquired SoftBank’s stake of about 5 percent of equity in Sinch.
Important events after the end of the year
- 12 January 2023, credit facilities of SEK 6,500m and USD 110m were extended by one year. New maturity is February 2026.
- Jonas Lindeborg has chosen to leave his role as Sinch's CTO. His duties will be distributed to other executives.
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 conference on Thursday, 16 February 2023 at 14:00 CET. Watch the presentation at investors.sinch.com/webcast or call and register a couple of minutes in advance.
Sweden: +46 8 5051 6386
United Kingdom: +44 20 3198 4884
USA: +1 412 317 6300
Access code: 694 9357#
For further information, please contact
Ola Elmeland
Investor Relations
Mobile: +46 721 43 34 59
E-mail: investors@sinch.com
Thomas Heath
Chief Strategy Officer & Head of Investor Relations
Mobile: +46 722 45 50 55
E-mail: investors@sinch.com
Roshan Saldanha
Chief Financial Officer
+46 73 660 24 19
E-mail: investors@sinch.com
About Sinch
Sinch’s leading cloud communications platform lets businesses reach everyone on the planet, in seconds or less, through mobile messaging, email, voice and video. More than 150,000 businesses, including many of the world’s largest companies and mobile operators, use Sinch’s advanced technology platform to engage with their customers. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 60 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
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 16 February 2023 at 07:30 CET.
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