24SevenOffice Group AB, a leading provider of ERP and cloud-based business management systems, has announced an ambitious financial target.
The company aims to achieve a minimum recurring revenue of 500 million SEK within the next 500 days, with an EBITDA of at least 50 million SEK. This goal aligns with the company’s strategy for profitable growth and reflects the positive returns from recent investments in technology, brand enhancement, and market expansion.
Strategic Growth and Technological Innovation
Over the past 2-3 years, 24SevenOffice has invested heavily in new technology and brand development, positioning itself as a leader in the ERP market. These strategic investments have started to pay off, as evidenced by the company's robust performance in the first quarter of 2024. With a third consecutive quarter of over 30% annual growth, 24SevenOffice reported a 33% year-on-year increase and an EBITDA margin of 22%, significantly surpassing the Rule of 40 — a combined growth and profitability metric.
Eirik Aalvik Stranden, CEO of 24SevenOffice, commented:
“We have consistently focused on innovation since moving our accounting systems to the cloud in the early 2000s. Our recent investments in AI technology are designed to provide customers with a more efficient, accurate, and holistic experience. This translates to faster bookkeeping, better insights, and automated processes, allowing accountants to focus more on strategic and commercial support for their clients.”
Financial Targets and Market Positioning
The financial target of 500 million SEK in 500 days with 50 million SEK in profitability is not just a goal; it's a strategic milestone for 24SevenOffice. The target will be reached in the fourth quarter of 2025, aligning with the company’s quarterly reporting cycle. This target is a baseline for the company's profitable growth, underpinned by strong operational capabilities and an enhanced market position.
Aalvik Stranden added:
“We see good returns from these strategic investments and expect that our operational capabilities and increased market position will continue to provide results. The financial targets are seen as a minimum target and will be the baseline for 24SevenOffice’s profitable growth in the next 500 days.”
Shareholder Engagement and Market Expansion
To further engage with shareholders and investors, 24SevenOffice plans to host a capital markets day in autumn 2024. This event will follow the company’s transition to Nasdaq First North in Stockholm, a move intended to attract greater attention from a larger investor base. The company’s share price has already increased from around 5 SEK to approximately 17 SEK, reflecting investor confidence in the company’s growth strategy.
24SevenOffice's commitment to innovation and strategic growth is paving the way for a successful future. The ambitious financial targets underscore the company's dedication to delivering value to its shareholders and customers alike. With a strong foundation in place, 24SevenOffice is well-positioned to achieve its goals and continue its trajectory of profitable growth.
For further information, please contact:
Eirik Aalvik Stranden, CEO
Tel: +47 247 00 030
Email: eas@24sevenoffice.com
