The first quarter in summary (January-March 2024)

• Net sales totaled tSEK 63,457 (56,162) and increased by 13.0% (12.8%). Currency-adjusted net sales growth amounted to 11.1% (3.0%).
• Operating profit amounted to tSEK 13,843 (10,914), with an operating margin of 21.8% (19.4%).
• Adjusted operating profit totaled tSEK 19,599 (11,212) and adjusted operating margin was 30.9% (20.0%).
• The total number of paying subscribers at end of period was 893k (881k).
• ARPU in the quarter totaled SEK 276 (251). Currency-adjusted ARPU totaled SEK 271 (243).
• Earnings per share before and after dilution for the quarter amounted to SEK 0.57 (0.44).

Important events during the reporting period

• On January 23, it was announced that Sleep Cycle is reorganizing and consolidating its operations to the head office in Gothenburg. The company’s CPO and CHRO, Samuel Cyprian and Cecilia Mikkov, chose not to relocate to Gothenburg and will leave the company during the second quarter.
• On February 26, Sleep Cycle adopted a new business strategy that focuses on user growth, user engagement, and creating new revenue streams through the company’s technology and data.
• On February 27, it was announced that Peter Alsterberg had been recruited to the newly created role of CCO. The newly created role increases the company’s commercial focus. Peter took office April 8.
• On March 20, Sleep Cycle held a capital markets presentation where updated financial targets were presented. The new targets are a doubling of revenues in the mid-term and an annual operating margin of approximately 25%. The dividend policy remains unchanged.

Important events after the period end

• On April 8, it was announced that Petter Höglander had been recruited as CPO. Petter has a background in subscription-based businesses in the consumer sector. Petter took office April 15.
• The Hans Skruvfors was elected as a new member of the Board of Directors at Sleep Cycle’s Annual General Meeting April 11. Rasmus Järborg and Olof Nilsson declined re-election. The AGM also resolved on a new warrant program and an ordinary dividend of SEK 1.30 per share and an extraordinary dividend of SEK 1.00 per share for 2023.
• On April 12, it was announced that Sleep Cycle has recruited Elisabeth Hedman as new CFO after the current CFO Per Andersson wished to continue his career outside Sleep Cycle. Elisabeth takes office June 1.

Commenting on the quarter, CEO Erik Jivmark says:

“In the first quarter of 2024 revenues increased 13 % and we saw a stronger underlying growth compared to previous quarters, also adjusted for exchange rate effects. The efforts previously made to increase user acquisition continued to yield results and the number of subscriptions increased 1.4 % to 893 000 compared to the previous year. With an adjusted EBIT-margin of 31 % we are in a good position when gearing up for increased revenue growth”.

“My focus now, and for the remainder of the year, is to execute the new strategy we presented in the first quarter. I am confident in the profitability of our business, and we will therefore increase the investments in three areas; user growth, user engagement and platform and data. With new investments in these areas, I am convinced we can increase the revenue growth and reach our targets”.

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 3 May 2024 at 8:30 CET.

The full interim report is available on https://investors.sleepcycle.com  

Sleep Cycles CEO Erik Jivmark, CFO Per Andersson and CCO Peter Alsterberg will give a presentation on Friday 3 May at 9:30 CET. The presentation can be followed on https://ir.financialhearings.com/sleep-cycle-q1-2024

For more information please contact:

Erik Jivmark
CEO
[email protected]
 

Per Andersson
CFO
[email protected]
 

Jonna Grenfeldt
PR and Communication
[email protected]
+46 70 735 7539

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.