24SevenOffice Reports Positive Milestones and Profitability Outlook for 2023
24SevenOffice Group AB, a leading SaaS ERP company, has announced positive developments in its recently launched modules, which have significantly strengthened the company’s growth and profitability outlook. Over the past two years, the company has made substantial investments in the development, integration, and rollout of new revenue-generating functionality and modules.
One notable achievement is the launch of a payroll system that works in both Norway and Sweden. Additionally, 24SevenOffice has successfully integrated and rolled out a scalable AI accounting system. Moreover, the company has been developing and rolling out a new payment reminder and debt collection system, which is currently only available in Norway.
Although these investments have initially resulted in a negative EBITDA in previous quarters, 24SevenOffice has now reached three significant revenue-based milestones. This progress is highly encouraging for the company’s future growth journey in 2024, and it remains confident in achieving profitability in the second half of 2023, as previously stated.
One milestone of particular importance is the achieved ARR (Annual Recurring Revenue) level. Since SaaS ERP companies typically have a valuation multiple of around 8-9 times revenue, this milestone indicates that the growth investments may have added four times more potential future value for shareholders (400 MSEK) than the entire investment loss from the previous year (approximately 100 MSEK negative EBITDA).
Furthermore, 24SevenOffice has invested in several other new modules and technologies during the same period. These include HRM, MRP, Fintech solutions, as well as a major rewriting and rebuilding of the new tech stack across the core system. With the full effect of these developments, the company expects even higher returns on its investments going forward.
The uptake of AI accounting is another noteworthy development as it demonstrates that an increasing number of medium-sized companies are embracing AI in their daily business operations. It is worth mentioning that the Fintech solutions, such as factoring, credit facilities, and buy now pay later functionality, which the company believes to be its biggest opportunity, are yet to be launched due to external reasons.
In conclusion, 24SevenOffice Group AB’s positive milestones and profitability outlook for 2023 showcase the company’s dedication to innovation and growth. With successful module launches, investments in advanced technologies, and the increasing adoption of AI, 24SevenOffice is positioning itself as a leading player in the SaaS ERP market. The company’s commitment to profitability and value creation for shareholders reaffirms its status as a promising contender in the industry.
Source: [Software Equity Group](https://softwareequity.com/research/seg-saas-update-august-2023)
