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Sinch AB Interim Report: Q1 2025

On May 8, 2025, Sinch AB proudly announced its financial results for the first quarter ending March 2025, showcasing resilience and growth in an evolving business landscape.

Summary of Financial Performance

During this period, the company achieved a net sales figure of SEK 7,049 million, reflecting a 4% increase from SEK 6,792 million in the same quarter last year. This growth translated into a 3% organic increase, demonstrating strong market demand and effective strategy execution. Similarly, the gross profit ascended by 4% to SEK 2,408 million, which was an organic growth of 2%. Notably, all regions and product categories marked organic gross profit growth, emphasizing the holistic strength of Sinch’s offerings.

Despite the positive sales and gross profit growth, the company experienced a 4% drop in EBITDA, which registered at SEK 740 million—a 7% organic decline. However, adjusted EBITDA surged by 12% to SEK 889 million, showing an 8% organic uptick, indicating effective cost management in key areas.

A loss after tax of SEK -47 million marked the quarter, an improvement from SEK -90 million during the preceding quarter. Furthermore, the cash flow from operations after investments displayed a significant decrease to SEK -104 million from SEK 424 million, primarily due to a temporary increase in working capital. The rolling 12-month free cash flow per share stood at SEK 2.15, up from SEK 1.80, while cash conversion for the year was 50%.

Key Developments

The first quarter was pivotal for Sinch in terms of strategic initiatives and market positioning. A significant highlight was Sinch being recognized by IDC as a leader in Communication Platform as a Service (CPaaS), reinforcing its status as a trailblazer in the communications domain.

Additionally, Sinch launched the RCS Business enablement service, a robust solution designed to support operators in establishing and managing RCS for business applications. This initiative not only broadens Sinch's service portfolio but also strengthens relationships with key telecom partners, including an expanded collaboration with Verizon to provide RCS for Business Messaging.

There were notable executive changes as well; Robert Gerstmann, Sinch's co-founder, stepped into the role of acting Chief Product Officer following the departure of Sean O’Neal. Moreover, on April 1, Jonas Dahlberg was brought on board as the new Chief Financial Officer, a strategic move expected to guide the company through its financial growth trajectory.

Looking Forward

Following the achievements in Q1, Sinch's board of directors has proposed a share buyback authorization of up to 10% at the upcoming general meeting, a decision indicative of the company's commitment to enhancing shareholder value. Furthermore, partnerships, such as those announced with OneReach.ai, continue to position Sinch favorably amidst competition.

As Sinch enters the next quarter, it will hold a webcast and phone conference on May 8 to delve deeper into its interim report, allowing investors and stakeholders to engage with senior management. This proactive approach aligns with Sinch’s commitment to transparency and communication with its stakeholders.

Conclusion

As a leader in the communication landscape with over 175,000 business partners globally, Sinch continues to innovate and adapt to market needs, ensuring its relevance and growth in a competitive environment. With demonstrable financial growth and strategic developments, the company demonstrates a bright outlook as it progresses through 2025.

For further details, visit Sinch's investor relations at investors.sinch.com.

Contact:
Ola Elmeland, Investor Relations
Email: [email protected]
Tel: +46 72 143 34 59
Jonas Dahlberg, Chief Financial Officer
Email: [email protected]
Tel: +46 70 347 23 83