STLFF - Stillfront Group AB (STLFF) Q1 2024 Earnings Call Transcript
2024-04-25 17:55:28 ET
Stillfront Group AB (STLFF)
Q1 2024 Results Conference Call
April 25, 2024 04:00 AM ET
ompany Participants
Jörgen Larsson - CEO
Andreas Uddman - CFO
Conference Call Participants
Simon Jönsson - ABG Sundal Collier
Amar Galijasevic - Carnegie Investment Bank
Nick Dempsey - Barclays
Eric Larsson - SEB
Martin Arnell - DNB Markets
Rasmus Engberg - Handelsbanken
Presentation
Jörgen Larsson
Welcome to Stillfront's Q1 report. Me, CEO, Jorgen Larsson; and CFO, Andreas Uddman, will present today. And going into the presentation, we are, first, some headlines of what we will talk about today. We had a promising start to the year, showing an organic growth, which is something that we have prioritized. And we also managed to increase our gross revenues or gross margin up to 80% for the first time.
And this is very important. I will go deeper into that later in the presentation. We sustained our high UAC, which was -- which is very good news because that is driving not only growth in this quarter, but for many quarters to come, both when it comes to existing products as well as that we have continued to scale Sunshine Island. That means that short term, the margin is lower, hence, as we have much higher UAC, so 21% recorded for the quarter in EBITDAC margin, which is a 3% down quarter -- sorry, year-over-year, but very stable quarter-over-quarter. We had a free cash flow of SEK 828 million last 12 months, which is a 2% down compared to last year.
Looking a bit further into our net revenues, you can see that we are at €739 million in net revenues with then 34% UA, which I think is the highest we have been able to deploy ever. And that, again, is good news because we have not compromised at all on our return rate on this. So that will yield further growth and margins throughout the year. So that is a good investment indeed. If you see also on the rolling 12 months is as a consequence, the rolling 12 months, UA is up to just shy of 30%.
You can also see that we have small FX effects, but a negative FX effect of 1% in the quarter. So, a very stable revenue line there. And... This continued high marketing spend is important to elaborate on because that is what will fuel both growth and margins for quarters to come. We have not compromised, as I said, on our return rates, which means that this spending as well as the one from Q4 will yield results already this year.
And this is the best investment we can do instead of investing in products where the outcome is much more uncertain and much longer later in time, the best investments we can do is in marketing on products with strong KPIs. So, we are very pleased, and we have steered active with the business in this direction. And that is why we are very optimistic about the coming quarters and hopefully, the coming years. You can see also that we have -- you can see the...
Stillfront Group AB (STLFF) Q1 2024 Earnings Call Transcript