<a id="bm-comp-89d3d260-a718-4fcd-8f63-2f72cd7195ab" name="bm-comp-89d3d260-a718-4fcd-8f63-2f72cd7195ab" class="BMCustomAnchor"></a><table><tr><td bm-component-id="89d3d260-a718-4fcd-8f63-2f72cd7195ab" style="vertical-align: top; width:100.000000%;"><ul><li>Sales less than 2m below ABGSCe 30m</li><li>EBITDA better than expected (SEK 0m vs. -1m)</li><li>Limited <font style="background-color:#ffffff;">consensus estimate revisions</font></li></ul></td></tr></table><a id="bm-comp-c061a610-c749-4bb7-a7ab-0be9b07fde1a" name="bm-comp-c061a610-c749-4bb7-a7ab-0be9b07fde1a" class="BMCustomAnchor"></a><table><tr><td bm-component-id="c061a610-c749-4bb7-a7ab-0be9b07fde1a" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q4'24 report</h3><p>Skolon delivered net sales of SEK 28m (-6% vs ABGSCe 30m), corresponding to y-o-y organic growth of 18% (-7pp vs ABGSCe 24%). The gross margin increased to 37.5% (0.5pp vs ABGSCe 37%). EBITDA amounted to SEK 0m (+1m vs ABGSCe -1m). ARPPU came in at SEK 165 (-1% vs ABGSCe 166), as the number of paying users amounted to SEK 863k (0% vs ABGSCe 865k). The sales deviation is minor (less than SEK 2m), and it can be impacted, and explained, by the timing of new contracts on a quarterly basis.</p><h3 class="bm-h3">Thoughts and outlook</h3><p>Volume and price grew 22% and 18% respectively for the year, yielding an organic growth of ~44%. We note that the Swedish operations yield an EBITDA margin of ~6%, and that is confirmatory of the company's scaling opportunity. Internationally, the growth expansion opportunity is significant, and it appears that the company is set to grow rapidly in the UK, as it aims to expand its investments there. Given that Skolon has proven that it can grow in the UK, we believe that this could be a significant opportunity. Moreover, partnerships with large players, such as Canva, could help Skolon expand abroad, and that is likely something that will become a key topic in 2025. <font color="#212529">Skolon reiterates target of 50% organic growth p.a. on average, and that is still below the company's historical average growth rate.</font></p><h3 class="bm-h3">Consensus estimate revisions and valuation</h3><p><font color="#212529">The share is up 5% YTD and is trading at 4x-3x EV/Sales '25e-'26e on our unrevised estimates. The mechanical impact on '25e-'26e sales is within a negative, low single-digit range.</font></p><table id="bm-img-d72d1fb9-ad40-4837-b8db-30c1a8941841" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="d72d1fb9-ad40-4837-b8db-30c1a8941841" bm-img-original-height="425" bm-img-original-width="888" bm-img-svg="image:image_upload/85532_c2e3e0c5-2937-4761-9b2a-e283d008b213.svg" bm-img-width-hint="100%" id="bm-id-d72d1fb9-ad40-4837-b8db-30c1a8941841" src="https://abgsc.bluematrix.com/images/image_upload/85532_c2e3e0c5-2937-4761-9b2a-e283d008b213_888.png" svg="/nas/web/clients/abgsc/images/image_upload/85532_c2e3e0c5-2937-4761-9b2a-e283d008b213.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, Company data.</td></tr></table></td></tr></table>