Twiik Year-end report 2022: Continued growth and improved results in the fourth quarter

The fourth quarter meant increased turnover and improved operating profit. In total, the company's turnover during the fourth quarter rose by 60% compared to the same period last year. For the full year 2022, turnover rose by 36% compared to 2021.

Fourth quarter in figures

  • Net turnover: 3 170 (1 982) KSEK
  • Operating profit: -2 262 (-3 458) KSEK
  • Profit after tax: -1 866 (-2 794) KSEK
  • Earnings per share before dilution: -0,14 (-0,42) SEK
  • Earnings per share after dilution: -0,14 (-0,42) SEK

The year in numbers

  • Net turnover: 12 004 (8 856) KSEK
  • Operating profit: -11 126 (-11 058) KSEK
  • Profit after tax: -9 164 (-9 007) KSEK
  • Earnings per share before dilution: –0,89 (-1,67) SEK
  • Earnings per share after dilution: -0,89 (-1,67) SEK 

Significant events during the fourth quarter

  • On December 8, 2022, the extraordinary general meeting decided on a fully secured rights issue and a directed new issue to guarantors. The issues were carried out between the end of December 2022 and the beginning of January 2023 and were registered with the Swedish Companies Registration Office on January 12. The number of shares thus increased by 15,386,580 shares and the share capital by SEK 7,693,290.

Significant events after the end of the period

  • The Rimlig Träning app is launched. Rimlig Träning was founded by Vanja Wikström, one of Sweden's leading family bloggers and influencers, as well as personal trainer Robert Svensson. The enterprise agreement was signed in the fall of 2022 and development of the app began in the fourth quarter. Rimlig Träning's app gathers inspirers with a focus on good training that fits into a well-fed everyday life for a wide target group.

Comment from CEO Anders Gran
The fourth quarter was a strong quarter for Twiik. Our total turnover increased by 60% compared to the same quarter last year, which in itself was a record quarter. It has also been a quarter where we purposefully looked inward to create the best conditions for growth going forward.

Autumn has in many ways been challenging for both consumers and those who run gyms and training facilities due to steeply rising costs and high unpredictability. Despite uncertain times, we have continued to grow and expand our customer base. In many ways, we have also deepened our existing customer relationships through new projects. We act in a changing market, which benefits the players who move quickly and work close to the customer. Developing our technology platform together with our customers is an important part of our strategy – both to create the world's best platform and strong customer relationships.

During the third and fourth quarters, we have continued our path towards a positive cash flow, while at the same time continuously taking important market shares. Part of the work has consisted of analyzing our various revenue streams and prioritizing them primarily based on cash flow rather than revenue growth and increased market share. Based on the work done so far, we see clear potential in working more actively with customer projects and increasing our investments in our own products and services, such as the corporate challenge TeamBoost or our Christmas calendar that was tested during the quarter.

When it comes to customer projects, we have received a positive response with several exciting projects in the starting pits. The projects cover several parts of the platform such as gamification, lead generation and marketing. The development takes place in harmony with our overall platform at the same time as it is validated directly on the market.

Our own products have the strength that they can be sold both directly to customers and via gyms and trainers who get a turnkey product to sell to their customers. As a platform and ecosystem, we are in a unique position to develop content and digital products with good opportunities for wide distribution. TeamBoost is a natural starting point, but we have also started work on other formats for digital training products – exciting work with the potential to make a real difference in 2023.

At the end of the year, we carried out a rights issue, fully guaranteed by our major owners and us in management. The capital gives us momentum forward and the opportunity to continue developing the world's best digital training platform. I would like to thank all shareholders for their trust and look forward to having you along on our continued journey.

I am also happy and proud of the team at Twiik who, together with our fantastic customers, are building the digital training of the future.

Anders Gran, CEO