Upsales Technology AB (publ) - interim report Q1 2025
January - March 2025 (compared to the same period last year, Upsales group)
- Annual recurring revenue (ARR) at the end of the quarter was MSEK 144.7, an increase of 6.5% during the last 12 months
- ARR increased by MSEK 2.8 during the quarter
- Net sales decreased by 3.2% to MSEK 36.1 (37.3)
- EBITDA amounted to MSEK 6.3 (8.7)
- EBITDA margin was 17.5% (23.2%)
- Operating profit (EBIT) amounted to MSEK 3.9 (6.5)
- Net income amounted to MSEK 3.1 (5.4)
- Cash flow from operating activities amounted to MSEK 5.3 (7.9)
CEO COMMENT
In Q1, Annual Recurring Revenue (ARR) amounted to MSEK 144.7, an increase of MSEK 2.8 during the quarter. Compared to the same period last year, net sales decreased by 3.2% to MSEK 36.1 (37.3). EBITDA amounted to MSEK 6.3 (8.7), with a margin of 17.5% (23.2%). Operating profit (EBIT) was MSEK 3.9 (6.5), and operating cash flow was MSEK 5.3 (7.9). Revenue decreased compared to the same period last year, primarily due to an unusually high level of one-off revenues in the comparison quarter.
Q1 marked another important step in the Upsales growth journey. We are seeing tangible results from the strategic pivot we initiated last year — a shift that is now accelerating, fueled by continued product innovation and an increasingly AI-driven market. ARR growth continued this quarter, signalling a return to our historical trajectory. Our continued investment in product development and sales capacity is paying off, but as in the previous quarter, margins are slightly lower than last year. That is a deliberate choice. We have just come out of a slower growth period, and we are scaling up again, with clear expectations for improved margins over the year as growth and operational leverage kick in. Our focus remains unchanged: building a highly scalable, recurring revenue business with strong long-term profitability.
This quarter, we continued our investment in what is by far the most ambitious product initiative in Upsales' history: Upsales AI. Our vision is clear — to become the leadership team's strategic partner to drive revenue growth through AI.
AI agents are coming to the Upsales platform as a core component that leverages real customer and market data. This gives our customers unique tools to make better and faster decisions to focus their sales efforts in order to expand their sales to the right B2B clients. Because AI only works when powered by real-world company and market data, and that is where we are uniquely positioned.
We also saw continued strength in new sales during Q1. Our new pricing structure, including AI capabilities, has received positive feedback and is already contributing to growth. As we look ahead, we expect this to accelerate even further throughout 2025, driven by increasing demand for AI-native sales and marketing tools.
While many SaaS businesses are still adapting to a harsher macro climate, Upsales is in a strong position. We have no debt, net cash, over 90% recurring revenue, and a business model built for resilience. We are not directly exposed to interest rates or tariffs, but we monitor the situation closely to understand how our customers — and their customers — are affected. One of the benefits of running a capital-efficient, bootstrapped company is that we have built discipline into our DNA. That gives us flexibility. And it means we can keep investing in growth — even when others pull back.
We are still early in this next chapter for Upsales, but the signals are clear: our new direction is working. We are building the right product for the right market at the right time. I’m proud of how far we have come and more excited than ever about what lies ahead.
Daniel Wikberg
Founder & CEO