Briox delivered another quarter with strong growth while keeping costs under control. Sales of SEK 2.0m, for y-o-y growth of 63%, was in line with our expectations. Opex increased by 8% y-o-y, improving EBITDA from SEK -5.6m in Q1’21 to SEK -5.4m (-0.4m vs. ABGSCe SEK -5.0m). Moreover, Briox ended Q1 with an ARR of SEK 9.4m, which supports further growth in 2022e. The ARR, which is the most important KPI in our opinion, increased by 18% q-o-q and 68% y-o-y in Q1’22. Briox attributes the strong development to high interest among bureau partners for its new focus area, micro businesses. Building on the micro business offering will continue to be a priority together with development of the mobile app and continued investments in sales and marketing.
We cut EBIT on new, more conservative capitalisation model
Although the company continues to accelerate investments in the aforementioned areas, management said on today’s conference call that it does not expect any significant increase in the opex base near term. Hence, we forecast that opex will remain relatively flat in coming quarters and grow at a slower rate than sales. We cut 2022e sales by 1.5% and lower capitalised development as the company has opted for a more conversative capitalisation model – explaining most of the lower-than-expected EBIT in Q1. We now forecast 2022e EBIT of SEK -20m vs. SEK -17m before. SEK 2.5m of the SEK 3.1m lower EBIT comes from less capitalisation of development costs (see estimate revisions on p. 4).
‘23e-’24e EV/sales of 12x-10x is well below historical average
We like Briox’s decision to focus on micro businesses and to make the product offering cater to the specific needs of that customer segment. We think it makes the offering crisper while allowing Briox to build a stronger market position as a niche player. The share is n ...
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