Sleep Cycle as an investment
Sleep Cycle is a subscription-based platform for sleep analysis and sleep improvement. We are the market leader, profitable and have a clear strategic focus on constantly further developing our service. Here we tell you why you should consider investing in Sleep Cycle.
* Average annual subscription revenue per subscriber during the period
Four reasons to invest in Sleep Cycle
1. Leading position in a large market
- The market for sleep applications is estimated at SEK 5 billion and is expected to grow at a 19% CAGR
- Sleep Cycle is the market leader and most downloaded app in the sleep segment
- Sleep Cycle has the world's largest database with over 2 billion nights analyzed
2. Accessible product with active users
- Sleep Cycle is available in a portable hardware - smartphones and smartwatches
- High percentage of active users leads to a growing database that strengthens competitive advantage and improves product innovation
- All-encompassing sleep solution (analyze, educate, improve)
- Dynamic product experience based on user behavior
3. Winning business model
- Recurring revenue from subscription model
- High profitability through scalable product offering
- Good cash conversion driven by advance payments
4. Expansion and growth
- Data and insights enable expansion of product and services packages
- Through increased visibility and expansion in new sales channels, new users are reached
- The interest in data-driven sleep-and-health insights has seen a sharp increase
Financial objectives
Growth
Sleep Cycle aims to have doubled earnings in the medium term.
Profitability
The company aims for an annual EBIT margin of around 25%.
Dividend policy
The Board of Directors in Sleep Cycle AB (publ) has adopted a dividend policy with the goal that dividend shall, over time, amount to between 40% and 60% of annual net profit after taxes.
Sleep Cycle has a history of profitability and strong cash generation. With an asset light business model underpinned by prepaid subscriptions, the Board of Directors opinion is that the company can deliver on its long-term strategic goals, including investments for increased revenue growth, in combination with an annual dividend yield.
Health as a business model
Our business is based on a subscription-based business model that, through advance payments and recurring revenue, creates predictability and a strong cash flow.
Since we offer a valued product that is based on many years of development, and where the influx of customers is largely organic, we have low costs for customer acquisition, which gives high profitability.
In combination with the fact that the cost for each new user is close to zero kroner, our business is one hundred percent scalable.
The market
Sleep Cycle reaches a very large part of the world's population because the app can be used virtually on all iOS and Android devices.
A significant part of the world's population experiences problems with sleep at some point in their lifetime. It can be related to stress, nightmares, or toddlers. Many people do not experience sleep problems but want to sleep well in order to wake up rested and recovered in order to perform well and live their life to the fullest.
Sleep Cycle offers functions for sleep analysis, sleep optimization as well as give tips, advice, and guides for minor sleep problems such as difficulty falling asleep, difficulty fall back asleep or bad habits. Through these types of functions, we target a very large part of the world's population. Through advanced AI-based sleep analysis, we will in the future also be able to indicate clinical sleep problems.
Future offers
The future of sleep optimization offers expansive opportunities in both product development and accessibility of our services on more platforms and in new channels. With a nearly unrivaled volume of sleep data, patented sleep analysis, and a large user base, we are in a very strong position to develop new and innovative services for sleep analysis.
Through continuous product development, Sleep Cycle continues to add new features for analysis of sleep, snoring, sleep hygiene, and coaching tools to help our users achieve better health. Future plans also include bringing out functions for optimizing health, sleep and well-being as well as functions to detect clinical sleep problems such as insomnia and sleep apnea.
Product offer
Mobile app
The Sleep Cycle app is a comprehensive sleep service that helps you fall asleep, wake up refreshed and improve your sleep.