2024-02-15 12:00:24 ET
Sinch AB (publ) (CLCMF)
Q4 2023 Earnings Conference Call
February 15, 2024 8:00 AM ET
Company Participants
Thomas Heath – Chief Strategy Officer and Head- Investor Relations
Laurinda Pang – Chief Executive Officer
Roshan Saldanha – Chief Financial Officer
Conference Call Participants
Predrag Savinovic – Carnegie
Stefan Gauffin – DNB
Akhil Dattani – JPMorgan
Laura Metayer – Morgan Stanley
Deepshikha Agarwal – Goldman Sachs
Fredrik Lithell – Handelsbanken
Presentation
Thomas Heath
Warmly welcome, everyone, to this Sinch Earnings Call for the Fourth Quarter 2023. My name is Thomas Heath. I'm Chief Strategy Officer and Head of Investor Relations. And with me today, I have our CEO, Laurinda Pang; and our CFO, Roshan Saldanha.
And with those opening remarks, I'll hand the word over to Laurinda.
Laurinda Pang
Thanks very much, Thomas, and a warm welcome to everyone, who is joining us for today's call. I'll begin with some overall highlights and comments around our performance in the fourth quarter. I'll then ask Thomas to take us through some of the recent and very exciting developments in the global messaging market. And then to Roshan, who will guide us through our financials. I will then introduce our growth acceleration plan and some of the many concrete measures we are taking to improve our business and accelerate our growth.
Before we dive into the fourth quarter, please turn to Slide 2 for a brief introduction to our business. We at Sinch are pioneering the way the world communicates. We are helping businesses throughout the world to communicate with their customers, leveraging cloud-based technology to interact with each unique customer in a timely, relevant and convenient way. Our Customer Communications Cloud powers more than 700 billion unique customer interactions per year on behalf of more than 150,000 paying customers. We are present in more than 60 countries and serve businesses of all sizes.
In the full year 2023, we reported revenues of SEK28.7 billion, gross profit of SEK9.5 billion and adjusted EBITDA of SEK3.6 billion. We have been profitable and cash generative since our foundation in 2008 and generated SEK1.8 billion in free cash flow over the past 12 months. We build our strategy around profitable growth and look to lead our industry both through our organic efforts and inorganic expansion.
Please turn to Slide 3, where we capture the most important developments in the fourth quarter. First and foremost, we are maintaining healthy margins, both at the gross profit and EBITDA levels. Our gross margin in the fourth quarter was 33.5%. This is the same level as in Q3 and a 0.7% increase over Q4 last year. Gross margins are stable across each of our four financial segments, but we do have a structural tailwind at the group level since the higher margin areas are growing faster. Our EBITDA margin was 11% and our adjusted EBITDA margin, which reflects underlying profitability on a comparable basis, was 13% in the quarter. Our leverage, measured as net debt to adjusted EBITDA, continues to decline. The ratio is now 2x, down from 2.2x in Q3 and from 2.7x at the end of 2022....
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Sinch AB (publ) (CLCMF) Q4 2023 Earnings Call Transcript