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Sleep Cycle interim report January-March 2023: Stable growth and positive effects from price adjustments and currency
April 27, 2023, 08:30
Regulatory information
Growth was stable in the first quarter and revenues increased by 12.7% (19.2%). The positive effects of currency and price adjustments implemented in 2022 contributed to the increase in ARPU by 15.1% to SEK 252, which was the main driver of revenue growth. The quarter saw the launch of Sleep Cycle Kids, a strategic initiative that provides parents with tools to improve their children's sleep routines. Sleep Cycle Kids creates a visible offer relating to a familiar problem among a distinct target group, while also achieving significant synergy with Sleep Cycle’s user base and data.

The first quarter in summary (January-March 2023)

  • Net sales increased by 12.7% (19.2%) and totaled tSEK 56,447 (50,089). Currency-adjusted net sales growth totaled 3.3% (21.3%).
  • Operating profit totaled tSEK 11,090 (12,742) and the operating margin was 19.6% (25.4%).
  • Adjusted operating profit totaled tSEK 11,388 (12,742) and adjusted operating margin was 20.2% (25.4%). In the first quarter, costs of in total tSEK 298 related to the public cash offer from Velvet Cichlid during 2022 affecting comparability have been expensed. No additional costs are estimated to affect the year. No costs were adjusted for in the first quarter 2022.
  • The total number of paying subscribers at the end of the period was 881,000 (920,000), an decrease of 4.2% compared with the previous year.
  • Average Revenue per User (ARPU) for the quarter totaled SEK 252 (219), a growth of 15.1% (4.8%).
  • Earnings per share before dilution for the quarter totaled SEK 0.45 (0.52). Results per share after dilution totaled SEK 0.45 (0.51).

Important events during the reporting period

  • The new app Sleep Cycle Kids was launched in February. The new app equips parents with tools to optimize bedtime, reduce the time it takes to fall asleep, and identify and change behaviors that may be problematic for children's sleep.
  • Sleep Cycle’s Board of Directors adopted a distribution policy with the aim of distributing between 40-60% of earnings after taxes over time. The Board proposes a dividend of SEK 7.00 per share, equivalent to SEK 141.9 million based on the number of outstanding shares as of February 10, 2023. SEK 1.00 per share constitutes the ordinary dividend for 2022 and SEK 6.00 per share constitutes the extraordinary dividend.
  • On February 2, it was made public that Velvet Cichlid AB had decided not to pursue the public cash offer. The majority of costs in connection with the board’s assessing the offer were charged to the fourth quarter 2022.

Important events after the period end

  • In April, Sleep Cycle launched a new feature that uses machine learning to detect breathing pauses during sleep. By detecting possible breathing pauses, the user is given important information on what is affecting their quality of sleep and how to improve it.

Commenting on the quarter, CEO Carl Johan Hederoth says:

“Despite a challenging market growth was stable in the first quarter. The positive effects of earlier implemented price adjustments are now starting to break through and increased revenue per new user was clear. The profitability of 20.2% for the quarter shows the strength and scalability of our offering and it feels good to see that we are back to levels around our 20% target.”

“In 2022 we boosted our investments in product development, which was fully in keeping with our strategy. With several launches ahead, I expect increased new user acquisition and growth in subscriptions. The most important launch of the first quarter was Sleep Cycle Kids, an offering designed for parents struggling to manage their children’s sleep. The service creates growth outside our current target group, but more importantly, it solves a major problem faced by many families.”

This information offered is such that Sleep Cycle AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the below contact person, for publication on 27 April at 8:30 CET.

The full interim report is available on  

CEO Carl Johan Hederoth and CFO Per Andersson will hold a presentation on Thursday 27 April at 9:30 CET. The presentation can be followed on

For more information please contact:

Carl Johan Hederoth
[email protected]

Per Andersson
CFO and Head of Investor Relations

[email protected]
+46 70 939 5327

About Sleep Cycle
With millions of daily active users and over two billion nights analyzed in more than 150 countries, Sleep Cycle is the leading sleep tracking application and one of the most widely used solutions worldwide to improve sleep health. Sleep Cycle’s mission is to improve global health by empowering people to sleep better. Since its launch in 2009, Sleep Cycle has helped millions of people understand their sleep habits and improve their sleep.  The mobile application helps users fall asleep more easily, tracks and analyses sleep during the night, wakes the user in a light sleep phase and provides insight into how sleep quality is best improved. Sleep Cycle is one of the world’s most comprehensive sources for statistics on sleep and contributes to research and reporting on sleep worldwide. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP. The head office is located in Gothenburg, Sweden.