Quarterly report Q1 2022: Twiik increases consumer sales by 181% and ARR by 59%

Twiik continues to execute on its growth strategy and is doing its best first quarter to date. Consumer sales increased by 181% compared with the same quarter last year, while recurring revenues from licenses and subscriptions increased by 59%. ARR (Annual Recurring Revenue) thus amounts to approximately SEK 4.3 million.

During the quarter, Friskis Go was launched and new enterprise agreements were signed with, among others, Health Training Academy.

The technical platform has been further developed in several areas. Among other things, the company has launched a web player for digital training and improved the experience for completely sound-based training sessions.

The First Quarter in numbers

  • Net sales: 2,854 (2,338) KSEK 
  • Operating profit: -3,206 (-2,300) KSEK 
  • Profit after tax: -2,588 (-1,900) KSEK 
  • Earnings per share before dilution: SEK -0.39 (-0.74)
  • Earnings per share after dilution: SEK -0.29 (-0.48)
  • ARR: 4 310 (2 716) KSEK

Significant events during the first quarter

  • The enterprise solution for Friskis & Svettis Riks, Friskis Go, goes live. A strategically important project. The launch means that the monthly license for Friskis Go starts, which thus means a noticeable increase in the company's recurring license revenues.
  • Cooperation agreements are signed with Edenred, one of the world's largest benefit portals. The agreement refers to the Swedish market.
  • In March, the company raised loans totaling SEK 4.5 million from members of the board to cover a temporary capital need.

Significant events after the end of the period

  • In April, the Board of Directors decided on an issue of units of approximately SEK 12.1 million with preferential rights for existing shareholders, subject to the subsequent approval of the Annual General Meeting.
  • The exercise period for the TO1 series warrants began on May 4. The useful life ends on 25 May.

Comments from the CEO

Online training and hybrid training continue to grow in Sweden and globally. We see how our position strengthened further during the past quarter with confidence.

“We leave our strongest Q1 ever behind. Consumer sales increased by 181% and our recurring revenues are growing by 59% compared to the previous year.”
We continue to execute on, and invest in our strategy, which involves combining a license-driven SaaS business with a transaction-driven marketplace business. The combination creates substantial network effects where online training can be created in Twiik's platform and consumed in several different apps and in several different ways.
The vision of the platform is 'create in Twiik, publish anywhere'. As we develop the technical platform, these network effects will increase – something that we believe further increases the scalability of the business – both for enterprise customers and for Marketplace coaches.

Our visibility increases as customers go live and we see continued interest in our enterprise solutions from smaller players and niche concepts such as the Health Training Academy (HTA) concept.
In the wake of the growth in recurring revenues, we see opportunities to further adapt the platform for this customer segment and actively target it. The SaaS business has great prospects of becoming our largest contribution to the bottom line. This requires that we, in close dialogue with the market, continue to develop our SaaS services also to a wider audience where we have previously been primarily focused on a pure marketplace business.
We analyze the market on an ongoing basis and have a close dialogue with our customers – but also those we see as potential customers. When online training becomes an increasingly central part for coaches and gyms that become successful, the demands on the platform also increase. At the same time, individual coaches' knowledge in the area is also increasing, which will put pressure on platforms that previously charged coaches more when the market was new. As the market matures, competitive pricing will be increasingly important. Pricing that is at the right level and harmonizes with coaches' and gyms' revenue streams will be an important part of winning the market in the long run. Our view is that an expected increase in cost awareness among coaches benefits us, who already have a pricing strategy that focuses on financial sustainability for coaches.

The first quarter has also meant important platform development where we continue to develop the most complete platform for digital workouts. We have made several important upgrades regarding integration with other systems and infrastructure. We have also introduced several new features. During the quarter, we have, among other things, made it possible to carry out sessions directly on the web. This means a direct improvement of the service for the users who want to consume training on a larger screen. In the long term, we also see the possibility of offering fully web-based SaaS services, which would enable a faster roll-out for individual customers compared with the corresponding app-based services.
Overall, I feel great excitement when I look at our way forward. Our confidence increases thanks to the feedback we receive from customers and users. A growing ARR will in the long run create a stable foundation as we scale up our transaction-driven revenues.
Twiik was founded to get more people to reach their full potential and I am proud to see that the team's work makes a difference, during Q1 almost 1.4 million training sessions were logged on the platform. 

More people are finding their way to a healthier lifestyle through our platform and more trainers and gyms can focus on what they do best – helping people feel better.

Anders Gran, CEO