Hi and welcome everyone to Compodium. third quarter 2025 earnings call. Today is October 30th. My name is Jón Grétar and I'm the CEO of Compodium. I will be hosting this presentation today. Let's move on and talk a little bit about Compodium International. I want to give you a brief overview of the company and what we do. Compodium at a Glance. Our vision is to make the world a safer and more secure place for generations to come by ensuring information security, integrity, and privacy. We do that by striving to be the first choice in software solutions for all types of compliant communication and collaboration for both the public and the private sector. We provide a modular and adaptable product portfolio with secure software solutions for video messages, and more. Our business model and product offering. We are a Swedish SaaS company and a market leading provider of secure digital communication tools. The product portfolio is wide and includes secure video meetings with messaging and collaboration tools designed to facilitate confidential interactions while ensuring complete privacy and regulatory compliance. We now have a lot of regulations that everybody needs to comply to. We have GDPR, we have HIPAA, there is SOC 2, so it's a jungle out there when it comes to compliance. Our product offering is secure video where we have everything ranging from a contact center, which is more of like a call center application where people can route calls that come in, very popular with the healthcare sector where doctors can see patients in a waiting room and optimize the processes. We have secure video meetings where we have more like one on one or group video meetings exploiting the lobby functionality, just a regular meeting like you have in any other video meeting tool. We also have APIs so our customers that are providing solutions that are dependent on regulatory compliance can embed the video meetings in their offerings. We also have secure messages where we provide intuitive and user friendly messaging solutions, both available as cloud services or on prem. The reason why we provide them as cloud services or on prem is because we want to provide our customers with full flexibility when it comes to their own compliance needs. We have other solutions as well that I think are very interesting because they integrate with the video and the messaging solutions. We have secure and regulatory compliant software solutions for eFax, meaning that our customers can accept secure fax messages straight into the secure messaging platform, minimizing all of the compliance risk. We have also solutions for whistleblowers, secure forms that integrate with messages where you can collect appointments and information from customers and coworkers and many more. The key in the product portfolio is the integration of the services in a secure and compliant way. Our business model revenues are we provide monthly subscriptions and also annual subscriptions through tenders and direct contracts. Looking at the historical development of our ARR, the current ARR in Q3 2025 is SEK 41.3 million and we see that we started off in 2020 with the ARR for our software at SEK 9.1 million. In 2021 we grew to SEK 15.7 million, in 2022 we grew to SEK 19.2 million, and in 2023 we have grown to SEK 20.9 million. 2024 was a very busy year. We made two acquisitions, acquired Confrera in Norway, which is a competing digital communication platform to our contact center and a competitor of ours in the secure messaging space, and Secure Outbox in Sweden, Stockholm. In 2024 we ended the year with the ARR of SEK 42.6 million and today we have ARR of SEK 41.3 million. It's a slight contraction in the ARR explained by seasonality effects and Q3 is, I mean we're mid year now. Looking at the quarter July through September 2025, revenue wise we have net revenue of SEK 10.7 million and a gross margin of 89% which I think is on par with what people expect from a SaaS company. We've had a slight revenue contraction during the quarter due to seasonality effects. If you look at the business model, one of the subscription plans for example we have in Norway is usage based. We charge customers based on whether they have the video meeting during the disease or not. Some of the summer vacation, August, September activities leaking to Q3 which explains the slight revenue contraction. Looking at the EBITDA for the quarter we had an EBITDA of SEK 3.1 million with an EBITDA margin of 28% which I believe is a satisfactory performance. The positive EBITDA development is attributed to improved efficiency and cost reductions. We've been looking at overall costs as we always do and also working on improved efficiency. We've done some investments in AI tooling and structured processes. I think one of the reasons that we've been able to improve efficiencies is a product of our ISO 27001 certification and recertification of ISO 9001, where we have the correct opportunity to look over how we're working and optimizing those processes even further. Now, looking at the balance sheet and the cash flow, the cash flow from operations was positive at SEK 400,000 or SEK 0.4 million in the quarter. The total cash flow was - SEK 200,000 or SEK 0.2 million, which leaves us at the end of the quarter with a cash position of SEK 2.7 million. The cash position is on a similar level as Q3 2024. As you can see, we've had a seasonal dip in the cash flow in Q2 and Q3 last year as well. We are working on improving the long-term cash position and financial flexibility, and we continue keeping a close eye on cash going forward. Now, looking at the summary and the outlook, we have an EBITDA margin of 28%, which is up around 20% from the previous quarter. That's a very positive improvement. Unfortunately, ARR is down 2% from the previous quarter. That's mostly due to seasonal effects. I think 2% in a SaaS business like ours is within margin. The cash flow from operations is positive, performing in terms of CapEx, OpEx, balance, and focus on efficiency. As I mentioned, we will continue working with efficiency, especially leveraging artificial intelligence and AI in our delivery chain when it comes from converting an idea to a finalized product. We will also look into integrating artificial intelligence into our products as well, which is a considerable challenge from a regulatory perspective. Our unique selling point as a Swedish SaaS company is that we host the data in Sweden, and we don't have a lot of Swedish-based AI suppliers. There are a lot of U.S. suppliers that others are building their software on, so we're exploring that subject and the regulatory applications. What we've done in the quarter is that we've updated the products. We are always updating the products, but this quarter we had a specific push towards accessibility. We have a new Accessibility Act. We're also working on quality. When I say quality, it's both the reliability of the software—we have an ever-moving landscape of browsers and technology that we need to keep up with—but also the polish, the user experience, and the UI towards the user. We did a very large update of the UI, for example in the video meeting, to modernize the video meeting, and that update has been very, very appreciated by our customers because at the end of the day, I mean we are serving the customers and we need to meet their needs and they like nice things. The Confrera acquisition earn-out period is over at the end of Q3, it's like Q4 this year, so this quarter, after which our costs will decrease even further. We will have paid for that acquisition in full and all revenues that are coming from Norway will be completely ours. To sum up the Q3 2025 financial highlights, we have a total ARR of SEK 41.3 million, a gross margin of 89%. The EBITDA was SEK 3.1 million and the cash on hand SEK 2.7 million. That concludes the presentation of the Q3 report. Now I would like to move on to Q&A. If you have any questions, you can post them here in the chat in the Q&A section in the webinar. I think I can kick it off with a few questions and a few answers. One question that I received, I received some calls this morning, so I think I can start up with those. We continue to show a strong gross margin. How have we managed to keep it so stable? Despite the low revenue, our gross margin remained at 89% showing stability thanks to our high share of proprietary SaaS software subs, continued cost efficiency in delivery. As I mentioned before, we are very focused on cost efficiency, these things. Despite the seasonal revenue fabs that I've mentioned, we've been optimizing hosting cost, support processes, support costs, and platform operations. That allows for margins to stay resilient even at this 2% reduction in ARR. Another question is, the EBITDA margin improved significantly during the quarter and which parts of the business have contributed the most to that improvement? I think that's a very, very good question. It kind of asks what parts of our portfolio is performing better than the other, and the EBITDA margin rose to 28%, up from 23% year to date. It's mainly from product optimization across all of our brands, Compodium, Confrera, and Secure Outbox, as well as efficiency gains in operations. Disciplined delivery in product platforms and disciplined cost control is the key there. We also have a question on the report itself: growing interest from partners to elaborate on how the partnership model contributes to scalable growth. We are a Swedish software company and traditionally have been very strong in Sweden. We've won a lot of tenders. A very large part of our customer group is Swedish public sector through tenders. Now we have a wide partner network in Sweden. We are working with some of the biggest partners here that are servicing our customers. We are also working on growing our partner ecosystem, which enables efficient scaling without proportional cost increase. We are currently working on onboarding partners outside of Sweden as well. By combining digital onboarding for small and medium businesses with strategic partners for large public sector clients, we gain and reach the market adoption and cost-efficient expansion that we feel is necessary in these modern times. We have digital onboarding for SMBs, which means that they can find us online, they can create an account and start a business with us, a business relationship with us, and start using the products very, very smoothly. For those customers that require more of a detailed onboarding process, sales processes that require all sorts of customized agreements, we have a very skilled in-house sales team as well that supports our partners in onboarding those customers. We have a question about AI. I mentioned AI briefly during the previous call and now we are working with that. We've invested into AI and how does that contribute to customer value and efficiency? I think it's a very, very good question. AI is early stages and a lot of companies are figuring out how to use it. We've gone through this hype cycle that the partner talks about where there is this high expectations and then people figure out what it really is and then sober up a little bit and start working with it in the company and figure out how it's used. What we've been doing is mainly focused on simplifying workflows, automating our tasks, security and security checks and tests and everything, and also improving support response, analytics. Simply put, mainly driving the operational efficiency within the company. We will continue investing in AI in the company for cost-efficient scalability to drive smooth operations. There is also a little bit, there's always a little bit of risk on introducing these new elements into operations. We are acting carefully but also maintaining the pace. There are also lots of questions on how do you view your opportunity to take a clear position as the European alternative of secure communication. I think it's a very, very good question. Sweden and Compodium have a very, very strong position within Europe and the world, for we already meet strict Nordic and EU data protection requirements with all data stored in Swedish sovereign cloud infrastructure. I think it's important that we underline the sovereign cloud infrastructure here. It's a Swedish infrastructure owned by a Swedish company governed by Swedish law, which I think is very important to underline. There are people out there selling these solutions that are hosted in U.S. jurisdiction. While that might be verified for some, we have decided to focus on the European jurisdiction as instant. The process of that sets us up for success. I think we have got it's fully relevant for us to go to markets abroad. Another question is on synergies and acquisitions. The Secure Outbox acquisition was a large acquisition for the Compodium group compared to the jump in ARR. The question is what synergies have been achieved after the acquisition of Secure Outbox and how do they contribute to the revenue or cost efficiency? The acquisition delivered technology and organizational synergies. We were two small companies, relatively small, with around 15 employees each working side by side in the same market with the same products, doing the same activities to a very large extent. The acquisition delivered technology and organizational synergies. We were able to focus on product development a lot better and prioritize more efficiently, and that includes a secure security platform. Joint sales efforts, we merged the sales teams and reduced duplication in R&D but also in administrative roles in the company. We had duplicates everywhere. Those synergies have improved cost efficiency and cross-selling potential. Now we have a very, very skilled sales team servicing these two previously two customer bases that are now merged into one. Now we're able to match our offerings a lot better between those, between the two previous portfolios that now have been merged into one. Now we have a question as well on ISO 27001 certification and what it brings to the business. That's a very good question. I think ISO 27001 certification as being a security company shows our underlying dedication to security and the promise that we make to our customers. From a branding perspective, I think it's very, very important. I previously mentioned on previous semester call we were actually performing on the activities required for an ISO 27001 certification. The only thing we were missing was the stamp. We've added the stamp now so we can go to the market and say we are ISO 27001 certified, which I think instills confidence in ourselves, but also trust when it comes to our customers. It's a market-leading certification that's widely recognized. Another thing as well, an ISO 27001 certification drives efficiency in sales because previously it might be too much detail to go into here, but previously when an actor, public actor for example, had a tender, you could either send the ISO 27001 certificate and certification scope as an attachment to our response to that tender or answer a very long question, a bucket of questions on how we operate. We had to do that for every tender. Now we managed to optimize those processes as well. I think we have one more question here on how Compodium plans to finance continued expansion. I think that's a relevant question. We did some acquisitions last year. The question is how will we finance it? Will it be through cash flows, loans, or new share issues? The focus remains on self-financing through operational cash flows. However, the company retains the flexibility to use strategic financing or equity investments if needed to accelerate growth initiatives. The continued organic expansion is self-financed so to speak, and we will inspect any potential M&A opportunity individually. We've also had a question here regarding the Ford FJN leaving the board on 28 October. Simply put, Tolle has been a very, very valuable member of the board for many years representing Conseil, a large shareholder in the company, and simply put, Conseil decided to focus on other investments. I believe it is a sign of trust towards Compodium as Tolle has been with us throughout the challenging times that we've gone through, more the cost optimizations, and I've written about that in our quarter reports and annual reports. We've had to do quite a number on Compodium a few years ago, restructuring, reducing costs, and optimizing both the product and the customer portfolio. I interpret that now it's a sign of trust that we are through that phase so Conseil can start focusing on other investments that maybe need more attention. I think it's time to take maybe one or two more questions if any. I think it's good to mention, talk a little bit about our product launches and upgrades or plan for the coming quarter, and I think that's very exciting to talk about. I can talk about that to a very long extent. In short, the answer is we will continue rolling out the new video meeting user experience and enhancing integration features between all of our products. I've also mentioned we are looking into the potential of adding maybe AI to our products. We are continuing keeping up with all the shifts and changes in the security requirements and also the shift that we see in the market where customers are asking for more of an integrated and wide product portfolio where they want to integrate video meetings with messages and SDK messages with all sorts of messaging solutions. We have requirements on more advanced booking and workforce management feature for the contact center. We will simply focus on looking at what the market is asking for and how we can provide. Now, if there are no any more questions, no further questions. I would like to thank you all for attending this call. Please have a look at our report on the website if you haven't already. It's available under compodium.com investors, and we have also published our financial calendar for next year so you can have a look at that and keep an eye open for further protocols. Thank you all for attending.