Annual recurring revenue (ARR)

  • ARR at the end of the period was MSEK 136.3 (103.6), an increase of 31.6 % compared to the same time last year
  • ARR grew by MSEK 7.0, a growth of 5.4 % during the quarter

July - September 2022 (compared to the same period last year)

  • Net sales grew by 45.7 % to MSEK 32.7 (22.4)
  • EBITDA increased to MSEK 13.1 (4.4)
  • EBITDA margin increased to 40.2 % (19.5 %)
  • Operating profit (EBIT) increased to MSEK 11.3 (2.8)
  • Net income increased to MSEK 9.0 (2.2)
  • Cash flow from operating activities increased to MSEK 7.3 (3.4)

January - September 2022 (compared to the same period last year)

  • Net sales grew by 42.6 % to MSEK 94.4 (66.2)
  • EBITDA increased to MSEK 26.3 (14.9)
  • EBITDA margin increased to 27.9 % (22.5 %)
  • Operating profit (EBIT) increased to MSEK 21.0 (9.3)
  • Net income increased to MSEK 16.6 (7.3)
  • Cash flow from operating activities decreased to MSEK 15.8 (21.9)

Upsales ARR increased by 7.0 MSEK in the third quarter, a TTM growth of 31.6 %. Quarterly revenue increased to 32.7 MSEK, representing a 45.7 % year/year growth rate. Q3 is usually our slowest quarter in terms of growth, which is why it's extra rewarding to see the Upsales team delivering yet another record quarter of ARR growth. Our ARR growth is a combination of new customers in Sweden and the UK and existing customers adding more seats and services. The continued accelerated revenue growth is driven by higher ARR, lower churn, and better timing of closed deals throughout the quarter. Our profitability continued to improve, with an all-time-high EBIT margin of 34.7 %. The improvements in our margins can be attributed to higher operational effectiveness and a positive currency fluctuation of +1.8 MSEK. There is also a seasonality effect in the third quarter with part of the team on vacation, leading to lower personnel costs. I think these numbers again display the effectiveness and scalability of our business model.

Looking ahead, we continue to pursue the exciting growth opportunity we see in our existing customer base and the market as a whole. We are constantly fine-tuning our segmentation to target customers where we can be the most relevant, competitive, and successful. Our customer base consists of companies ranging from one to five thousand employees. It is clear that we deliver the most value to companies with 50 to 2,000 employees, and going forward we will focus all of our attention on these customers. We are experiencing increased demand from the larger companies within this segment, driven by investments in our product and a stronger brand. We will soon launch a premium offering with tailored services for this customer segment. As a result, we continue to have an ambitious hiring plan to meet the demand from new and existing customers.

How are Upsales affected by the turbulence in financial markets?
As we are all experiencing inflation, higher interest rates, and general turbulence in the markets, I want to address the resilience in our business model. When the economy slows down, it's more important than ever to keep track of your existing customers and increase the effectiveness in your sales organisation. We are a vital part of helping businesses achieve this, and I think this is the reason why we have not yet seen negative indications in terms of closed deals and cancellations from customers.

Having more than 90 % recurring revenue and annual contracts gives us stability in more challenging economic times. We are a net-cash company with zero debt, and the majority of our customers' contracts are linked to inflation with labour cost index clauses.

Daniel Wikberg, Founder & CEO

Further information
The interim report is available in its entirety at
Stockholm 2022-10-26