Hello, and welcome to the Readly audiocast with teleconference Q2 2021. Throughout the call, all participants will be in listen-only mode, and afterwards, there will be a question and answer session. Today, I am pleased to present Maria Hedengren, CEO, and Johan Adalberth, CFO. Please begin your meeting. Yes, good morning, and welcome to this session. I'm going to talk to you about our increased growth rate and our improved results today. As always, we also have Johan Adalberth, our excellent CFO, with us to walk you through some highlights on the numbers side. Next, please. Just a quick reminder of who we are. We are the European category leader when it comes to all-you-can-read magazine subscriptions with our 900 publishers and 5,000 titles of both magazine, and as you know, now also a good portfolio of newspapers. We have offices in three countries, but we are present in 50 countries, where you can download the app. We have users on pretty much all continents. Without further ado, let's dig into Q2. Next slide, please. Some Q2 highlights. I'm very pleased to be able to report that we had a solid FPS growth year-on-year of 30% and a revenue growth of 33%. Some of you may recall that there have been some VAT changes over the last 18 months, and we also had some headwind from a currency exchange this quarter. If you neutralize those factors impacting comparability year-on-year, we actually grew revenue organically by 35% year-on-year. U.K. continued to grow the fastest among our core markets and is now our third largest market. Germany has really picked up its growth rate this quarter. If you remember, last quarter, Q1 this year, they grew 19% year-on-year, and this year, 26%. It's a euro country, so also if you remove the FX impact, Germany actually grew 32% year-on-year, so a significant pickup in growth rate. I'm also very pleased to tell you that we have been successful towards our continued path towards long-term gross margin improvement and profitability. I improved all margins. Gross margins improved. Contribution margin went from -27, 28% last year to -10% this year with the same amount of marketing spend. Clear scalability proof point there. Also the operating margin improved year-on-year as well, going to -49% this year. Great traction on margin improvements while still continuing to grow. Next slide, please. Now we are on slide four. Yes, we grew our Full-Paying Subscriber by 30% year-on-year, which means we are now on 420,000 Full-Paying Subscribers. As you remember, we always have more users actually on the platform. These are the guys who pay full price. We had good development in all markets. Germany grew faster this quarter, and it's attributed to several factors. We see improved conversion. For example, as a result, I think from our great daily newspaper editions that we did at the beginning of the year with Bild, for example. We also have a good quarter in terms of partnerships. I think we're doing a great job everywhere, but I wanted to highlight Germany in particular this quarter. I think overall, conversion is gradually improving, and we continue to execute on our partnership strategy. I really like the shape of the curve here to the left where you see how there's a nice steep growth curve there. Let's move to next slide, number five, and with that, I'd like to hand over to Johan. Thank you, Maria. On this slide with financial targets, I'm pleased to conclude that we continue to delivering on our financial targets for the fourth consecutive quarter. Revenue growth was well in line with our revenue target between 30% and 35%, with a growth rate of 33%. As we mentioned before, we are facing somewhat tougher comparable quarters for the remaining part of the year. That being said, our financial revenue target for 2021 remains. Gross margin, our second financial target, was up 1.4 percentage points compared to last year and was 33.7% in Q2, meaning we are already close to delivering on this target, although being long term. Our path to profitability is underway, and we show improved results throughout this report, which I will soon walk you through. Next slide, please. Page six. Our subscriber base grew 30% compared to Q2 last year, ending at the quarter at 420,135 FPS. We continue to show solid subscriber growth, already slightly lower than in Q1. This is mainly due to the comparable figures from last year, where we picked up the growth pace significantly in Q2. Revenue in Q2 was SEK 110.8 million, which corresponds to a growth rate of 32.8%. Maria mentioned the adjusted revenue growth being even stronger at 35%. U.K. continued to show strong revenue growth of nearly 60%. Germany, our largest market, grew 25.5% in Q2 with an adjusted growth rate of 32%. We do see good traction in Germany at the moment. We will continue to invest in Germany significantly throughout the year. Next slide, please. Page seven. Gross profit SEK 37.3 million, an increase by 38.4% compared to Q2 last year. This is a significant improvement and pleasing to see because gross profit is one important lever for reaching profitability. Gross margin of 33.7% is the second highest gross margin we have reported to date. Gross contribution was -SEK 11.5 million, corresponding to a margin of -10.4%. This is also a significant improvement compared to Q2 last year, when the margin was -28%. It is also an improvement compared to Q1 this year, where we reported a margin of -16%. I'm mentioning these two comparable quarters because we then had the same level of marketing spend, around SEK 50 million. We will continue to invest in marketing going forward, and we do not anticipate any major swings for the marketing spend as seen last year. Next slide, please. Page number eight. Adjusted EBITDA was -SEK 51.5 million in Q2, about the same number as Q2 last year. Looking at the EBITDA margin, however, we see a significant improvement also here compared to Q2 last year and also compared to Q1, which, as I mentioned, had the same level of marketing spend. EBITDA margin was -46.5%, up from -64.3% in Q2 last year and -53% in Q1 this year. We are pleased to show these improved results. Personnel costs increased by 18% to SEK 23.3 million, and we will continue to invest significantly in our staff and our product going forward. Back to you, Maria. Thank you, Johan, next slide, please, slide number nine. I thought this was a great opportunity now, being our Q4 as a listed company, to reiterate our overall strategic pillars that we have continuously executed on since the IPO. Here you see five important strategic areas in our path to transforming the consumption of magazine content, which is our vision and the basis for how we capture the $60 billion market opportunity that we have to further penetrate when it comes to digital magazine reading. Category excellence is the first one, and it is about catering for our diverse audience needs and interests. An example of where we have made significant strides recently with adding newspapers in about seven countries so far, and also adding more exclusive content. I will talk a little bit more about exclusive content later in this presentation. We also have family sharing, so one account can be used by several family members. It's a great foundation for long-term retention where we have content for every member of the family. It really increases the likelihood of converting to a long-term customer. It's an important strategic lever that we continue to execute on. The second bubble here is product innovation, and that's, of course, a given for a company like ours to continue to develop our product. We are continuously doing various testing, various exploring of feature improvements. We have, over the past year, become more and more data-driven in our approach to product development. We know exactly what kind of behavior that leads to long-term retention versus churn, which we are basing our product development on. We are working on, for example, our recommendation engine, our mobile experience, and I will have more interesting things to announce further on. I think product innovation is really a driver for long-term revenue growth. We're investing in more developers right now, for example, so it's not something that will have significant impact on our growth next quarter, but it's important for our long-term growth. When we come to the third bubble here, geographic footprint. There is a high amount of untapped potential in both the deepening and widening our geographic footprint. We will expand into new markets, and we also have enormous potential in existing markets, for example, like Germany that I just mentioned. We don't have any market that we consider mature. Sometimes, even today, I got a comment from a journalist saying, "Well, I guess Sweden is a mature market." I said, "No," because even though Sweden is a very digitally savvy nation, for example, when you look at daily newspapers on the magazine side, we don't see a higher maturity in reading digital magazine in Sweden than in, for example, Germany. I would say that that's a great opportunity for us that we still have so much untapped potential in all our existing markets, as well as entering into new markets. I think near-term growth is largely dependent on existing markets for other penetrations. Long-term growth will come from more new geographies over time, because even if we enter new geographies in the next year or two, which we will, it takes some time to ramp up. You have to remember that a lot of the time when we enter new markets, we are among the first or even the first service of our kind. There is often a time where you need to educate the consumers about the category and about Readly. That is why ramping up a new market takes some time before it has a significant contribution to revenue growth. It's important for the long term. When you come to the fourth circle here, partnerships, and we have talked about that for several quarters now. I'm not going to dwell on it a lot, but it's great for brand awareness as reach and scalable growth at a lower cost. The final one, brand and marketing. We continue to see improved brand awareness in several countries, especially our core markets, when we do measurements. It's important to continue to invest in marketing and branding because it is still a young market, I would say. That's a little bit about our strategy. If you move to the next slide, I also want to take the opportunity to remind you about our path to profitability. Some of you have seen this slide before, and I think it's a great example this quarter to show how we're really executing on this path as well. The things that will lead us to profitability is improving contribution margin. We've clearly shown that we have done that this quarter and several quarters. Increasing revenues both from existing and new markets. As I mentioned, existing markets in the near term, new markets longer term. To increase our gross margin, we are clearly trending in the right direction with almost 34% this quarter compared to a couple of years ago when it was about 27%. Inherent scalability in our business model, which I also think we have proven this quarter that we can with the same level of marketing spend, but a continued high growth pace and an improved margin. Next slide, please. Slide number 11. Talking about category excellence, one of our strategic pillars, we added 23 new publishers this quarter, so continued high pace of adding content. With that, 85 new titles, including four newspapers. You see here to the right is an example of a very popular title in the U.K. It's the U.K.'s largest TV and streaming guide. Some of you may wonder, does anybody watch TV anymore, but it also has a lot of streaming coverage, a very popular title. We have added a lot of other titles, and I think continued high reader engagement is the recipe we get that this is really the right way to go. We continue to have average user reading time of around eight hours per month. On average, every paying subscriber is reading eight hours per month. We continue to have over 40% of our users entering the app every day. Things like daily newspapers and having a diverse mix of content that induces people to read at different times of day or different days of week or different times of month, is a clear inducer to long-term retention. We can see that in our data. Next slide, please. I mentioned earlier a growing portfolio of exclusive content. I think this is a very interesting area that we are executing on. To date, we have 60 magazine titles on Readly that is only on Readly. I think this is a great opportunity to provide deep, specialized titles. We have a lot of people reading about their passions and interests. One example is cars. We have, I think, over 400 motorsport titles, and of those, it's 350 or 360 car titles. We have a very engaged car-loving community on the platform. I'm particularly proud that we have a concept called Readly Retros, where we republish old issues from past decades with Motor Sport magazine. I'm extra proud that our Formula 1 icon, Jenson Button, accepted to be the front figure for this launch. That is one way for our publishing partners to generate revenue from old issues. I also want to highlight, we have Readly-only new content as well in recent times. In Sweden, for example, we have Country Smart. It's a small publishing house with only two people, the founders, who are running this magazine. It's only found on Readly, and they actually have two million page views every month. It's massive for them, of course. We have another interesting launch called Boom. This was a completely new title for parents, launched in collaboration with Gezin, which is a digital-only platform, and they are performing really well as well with only one issue out so far and more to come. I think we will continue to work with exclusive content. It's a great addition to our existing portfolio. Next slide, please. We continue to execute on our partnership strategy with 13 new partnerships launched. To give you a couple of examples, you see here to the right we launched with Samsung. They have launched something called Samsung Boost. It's a proposition for Galaxy S21 5G customers to choose a range of new app services to support their lifestyle. I think this is a perfect match for Readly because it is known when we talk and do consumer investigations and research and look at our data, that it does support a very good lifestyle and passion that the readers have. I think it's a great match, and very proud, of course, that Samsung wanted us to be on there. We also initiated a global partnership with H&M. We have worked with them before, but now we have a broad collaboration including Sweden, U.K., Germany, Netherlands and Italy. Interesting data point is that since the lockup restrictions have lifted a lot lately, we see a 69% increase in readership on our fashion category this spring compared to last year. We can really see in the readership what's going on in society. Now people can go out, and then they start caring more about what they wear. Yeah, I think that's an interesting development. Collaborating with H&M is a great opportunity, of course. Next slide, please. We're at slide number 14. To summarize, it was a strong quarter. The Q4 now since we became a listed company with good performance across all markets. Solid FPS growth of 30%, with increased growth rate in Germany as a special highlight, and a good revenue growth in 33%, even 35%, when we neutralize VAT and FX effects. While we continue to grow strongly, we have also improved our margins across the board, which I'm very pleased about. We have a clear growth strategy to capture the $60 billion opportunity that is out there in the market. With that, I hand over to questions. Thank you. We have a question from Derek Laliberté from ABG. Please go ahead. Your line is open. Thank you. Good morning. Congrats on another strong growth quarter. I was wondering a bit now, given the strong Q2 here, if you can give any sort of outlook statement about the H2 of the year. I'm thinking if most of the net adds will continue to come from Germany and then how you view the fact that the comparisons do seem to look a bit tougher heading into the H2. Thank you. Thanks, Derek. Good to hear from you. Yeah, as you mentioned, I think Germany will be part of our growth in the Q2 as well. Of course, we continue to see great traction there, but we do have good traction in all countries. To keep adding more partnerships and more content, and hopefully, I hope we can announce more dailies over time. We're doing a lot of great things here. As you mentioned, there is a bit tougher comparison quarters compared to last year because we had a pickup in growth rate in last year, Q3 and Q4. Despite that, we still stand by our financial goals of no less than 30% for the full year. That's very clear. Thank you. Just had a question here also on Sweden. If I remember correctly, you did see a really strong subs intake at the end of the Q1 this year. I was wondering how the retention of this sort of cohort that came in late has been. Also if you could comment a bit on Sweden, because it does seem that if you look on a sequential basis, it hasn't grown that much over the last two quarters. Just if you have any comments, what's going on in the market, if it's sort of down prioritized versus Germany and the U.K., for instance. Thank you. I think there are a couple of things in what you said there, Derek. I think, yeah, one thing we have to remember as an example, I'm going to start by commenting on year-over-year, because last year there was a VAT effect that made Sweden grow a little bit faster. It's a bit tougher comparison with the last year's growth rate, I would say. It doesn't necessarily mean that we have a significant slowdown this year in Sweden on the revenue side. When it comes to quarter-over-quarter, we have good growth in Sweden. It's stable quarter. We have high engagement. We have Aftonbladet, as you know, has clearly shown that. Good conversion. We look at ourselves as a portfolio of countries. Depending on what partnership we recently launched, what traction we get, what campaigns are out there, we do direct spend in a little bit different way. You remember, U.K. has been prioritized in terms of spend for several quarters. Now I think Germany is getting some more spend because we have a great basis for that with the partnerships and the increased conversion. It doesn't mean anything bad for Sweden, it's just that it's extra good in other countries. I think that's a good thing with our business model that we can optimize growth. In various years and periods, different countries will get more generous marketing spend, I would say. That sounds good and very understandable. Finally from me, I was wondering, you have this really impressive development in the contribution margin here. I was wondering if you could give some comment in general about how your lifetime value to CAC is developing. Like if you've seen any major change in that over the last quarter, and if there are any general differences to highlight between your three core markets. Yeah. Thanks, Derek. As you know, we don't give any explicit information with regard to this. I think Maria mentioned here Germany is interesting. I think from a general perspective, I think the DACH region have in the past shown great LTV to CAC ratios, and we continue to see good ratios. Apart from that, we're not commenting specific markets. Germany and DACH is interesting in this matter. Okay. Thank you. That's all from me. Thank you. The next question comes from the line of Kristoffer Carleskär from Handelsbanken. Please go ahead. Your line is open. Thank you. Good morning, guys. If I start at the net intake line, we saw that it was a bit softer this quarter compared to both Q4 and Q1, despite the high marketing spend you're booking there. Maybe could you please talk to us about why this softer trend, and is it something we should be worried about for the remainder of this year? Oh, I think you should see it that it will vary slightly between quarters depending on what we have going on. I think for the rest of the year, we discussed that compared to last year, it will be a different sort of year-on-year development because tougher comparisons. We stand by the financial goal, but we don't give any further detailing of what we think about the future next couple of quarters. I also think we can add, Kristoffer, Maria keeps talking about partnerships, and I think that's a great thing for us and part of our strategy. It also means that we can have longer time frames, especially if we're looking at larger potential partnerships that can be very interesting for us. There are longer lead times. As you know, we focus on our long-term achievements, not to say next quarter or the next two quarters. Should we have even more interesting partnerships, we are becoming, thanks to the increased brand awareness, more interesting to larger partnerships. That can also be a natural delay. I don't think, as Maria Hedengren said, you should look so much as a single quarter. We are in it for the long run. Yeah, I can give you an example of Samsung, for example. With that, they get three months for free, for example, of Readly, which is a great opportunity for us because they get to try it out. Large partners require a little bit more free periods than what we have in our own offers in the market. There will be a little bit longer delay from those type of initiatives. They are great for both brand awareness and intake down the line of Full-Paying Subscribers. Okay. Thank you for that. Maybe a bit of a detailed question. You mentioned DAU to MAU is at 41% for the quarter. If I recall correctly, Maria, in June you talked about 43% for the Q1. Just to be clear, it's coming down to 41 then there. Why is that? Is there a seasonal effect in there, or is it, for example, related to higher partnership intake? I think the seasonality does come into play. I think over 40% is still very good and a long reading time. Of course, when we have a high trial intake, for example, and it getting closer to summertime, it's not unusual for that amount to fluctuate a bit. I wouldn't be worried about that. Got it. A final one, maybe if you could just give us an overview of the competitive landscape in your core markets. Yeah, it's no real changes, actually. A bit uneventful so far. It continues to be quite local and fragmented, and we don't meet anyone across the board, a huge dragon that we meet in every country, for example, so far. Apple is still in the U.K. and in the U.S., and I think it's still really interesting there that we continue to see great growth in the U.K. and in the U.S. as well. Competition from Apple so far has not had any negative impact on us. Maybe the contrary, because there are more companies out there promoting the category and educating consumers. I really haven't seen any noticeable change in the competitive landscape in any country as to be honest. Okay. Thank you. Thank you. We have no further questions, so I will pass back for any closing comments. No, thank you. Again, very proud. Q4 in a row where we have strong numbers in line with our financial goals, and I'm very proud of this team. I just want to take the opportunity to thank everybody at Readly for a great quarter and well done.