Briox - Strategic initiatives starting to bear fruit - ABG

Briox reported a strong Q4, with sales increasing 64% y-o-y to SEK 1.9m (+9% vs. ABGSCe). ARR increased 50% y-o-y and ended 2021 at SEK 8m. It is encouraging to see that the new product package and the initiatives to simplify the onboarding process for new clients – both implemented in 2021 – seem to have led to accelerating growth. We expect this positive momentum to continue in 2022. EBIT of SEK -4.2m in Q4 was up SEK 1.5m from ABGSCe SEK -5.7m on both the higher-than-expected sales and lower-than-expected opex (-10% vs. ABGSCe), which we also find encouraging. Q4 opex was SEK 7.1m (7.8m), or -9% y-o-y. Briox’s main strategic objective in 2022 is to fortify its new strategic direction (a narrowed focus on micro businesses and integrating more with end-users). This includes investing in sales and marketing, making its mobile app more user-friendly, and continuing to develop the Briox Partner Program to simplify the onboarding of new users. 2021 was all about creating the building blocks for this change, i.e. changing the product package, creating Briox Academy and specifying its target customer. 2022 will be all about implementing the strategy and scaling the business, which we think we saw a hint of this quarter. Minor positive revisions to EBITDA We make some minor adjustments to our estimates on the back of this report. The changes correspond to 1%-2% positive revisions to ‘22e-‘23e EBITDA excluding capitalised costs. We prefer to use this profitability metric, as the company still has significant capitalised costs in relation to net sales. The main change comes from somewhat lower sales expectations in ‘22e, but higher in ‘23e, and slightly lower opex in both ‘22e and ‘23e (see the full estimate changes on page 4). Share trading at 17.6x ‘22e EV/ARR On our new estimates, the share is trading at 17.6x ‘22e EV/ARR, with a 46% ’21-‘2 ... Läs mer på Introduce