Fortnox AB (publ)

Q1 net sales were SEK563 million and EBIT was SEK246 million, with organic net sales growth of 25% and EBIT growth of 33%. Revenue growth was 21% overall, helped by existing customers, new customers, and price adjustments. EBIT margin was 44%, and Rule of Fortnox was 64%. Average revenue per customer reached SEK304, above the SEK300 target. Management said free cash flow adjusted for lending and acquisition grew 57% in the quarter. For the first quarter, guidance was not provided; management instead pointed to continued focus on strategic changes, more usage, and expanding payments and financing within workflows.

Roger Hartelius framed the quarter as proof of a sustainable business model despite the macro backdrop, pointing to 25% organic growth, 16 straight quarters above 60% on Rule of Fortnox, and progress on the company’s 2020 targets. He stressed that the strategic shift is toward higher usage among existing customers, more seamless workflows, and making payments and financing a natural part of the platform. On the take-private and international expansion topics, he mostly declined to speculate and said the company is focused on the current business plan and is still building the next one.

The call highlighted one-off items that lifted profit before tax: a SEK17 million positive revaluation of Mynt warrants, offset by SEK5 million of advisory costs related to the public offer, for a net positive effect of SEK12 million before tax. Management said these items had no effect on operating profit or EBIT margin. On cash flow, they said free cash flow adjusted for lending and acquisition increased 57% in Q1, and they noted growth in factoring on the balance sheet. On employee costs, Roger said headcount increased only modestly, with some lingering effect from last year’s reorganization.

Analysts pressed on whether the strong EBIT margin was helped by lower employee costs; management said employee growth was modest and there was some benefit from last year’s reorganization, but no major one-off was cited. Questions on the Fortnox card focused on the SEK100 million per month spend level and whether that implies about SEK12 million of annual revenue at a 1% take rate; management said the math is right and described the product as still in a stable growth phase with significant upside. On strategy, management said they are looking at different opportunities, including M&A, but have seen greater potential in Sweden so far and are still building the next business plan. Management also declined to comment on the EQT offer or regulatory timing.