SpectrumOne AB — Interim / Quarterly Report 2019

Feb 18, 2020

Interim report October - December 2019

Interim report October - December 2019

Fourth quarter

· Net sales amounted to MSEK 0,7 (4.8)

· EBITDA amounted to MSEK -32.6* (-11.2)

· EBIT amounted to MSEK -34.9* (-15.4)

· EBT amounted to MSEK - 36.9* (-17.9)

· Loan agreement amounting to SEK 10 million with largest shareholder

· Extraordrinary general meeting held on November 19

· TargetEveryone divests non-core legacy business TEO 1.0

Full year

· Net sales amounted to MSEK 9.4 (21.6)

· EBITDA amounted to MSEK -56.4 (-27.4)

· EBIT amounted to MSEK -70.1 (-40.4)

· EBT amounted to MSEK -74.6 (-46.8)

· Earnings per share before dilutions amounted to SEK -0,37 (-0,44)

Significant events after the reporting period

· TargetEveryone completes a directed issue of shares, receives a loan

facility and proposes further long-term financing in connection with strategic

acquisition of Cloud Explorers.

*) Including loss on sales of subsidiaries amounting to MSEK 28,2

CEO STATEMENT

Closing and a new beginning

During the last five months of 2019, I have had the opportunity to lead a long

-tormented company with amazing people and tremendous potential but in lack of

leadership, focus and vision. I set a plan with the board in order to make a

complete turnaround of the company, streamline our organisation and have the

right focus on the market. What we had planned to be executed on 12 months basis

we have accomplished to do in half that time. It turned out our people where

more engaged, our potential even larger and our value to our clients much higher

than we had expected. The times of insecurity are over, and our future is now

brighter than ever.

We have a built a remarkable pipeline, secured clients on a high level and

started processes with partners and new clients we could only have dreamt of

earlier. All this a necessity in order to become the best Martech company in

Europe. Also furthermore and importantly, become cash-flow positive and generate

profit for growth and development increasing our shareholders value.

Today we have a highly competitive and unique platform approaching the very

demanding and growing business data market, we have a partner program in place

with several key partners and a sales structure optimized to enable us to

approach the right clients. A clear cultural transformation in TargetEveryone

has enabled us to dare to reach for larger clients and thus boost our own self

-esteem.  This is creating a positive circle, clients and partners are now

reaching out to us to elaborate on how to cooperate together. This is truly

taking us to a new position in the market

From unstable and unprofitable heading towards a success

We basically started off at zero after divesting our legacy business in TEO 1.0

in October. A decision not taken easily but looking back to it, we know more

than ever that we did everything right. The divestment made it possible for us

to have one focus, to develop and adapt our business to what is becoming the

future of Martech - a high margin product with great future potentials and

incredible testimonials from partners and customers today and I am certain from

our future clients.

Significantly improved overall results & margin

TargetEveryone is at this moment experiencing the most remarkable turn-around in

its history. Since last Q4 we have managed to cut the majority of operational

costs by more than 70%, taking into consideration the extraordinary costs we

have incurred during the reductions in staffing and restructured of our

workforce.

Our EBITDA is clearly improved by more than 40% since last Q4, taking in

consideration the one-off cost for loss on sales of subsisidiary. This is the

result of a strict focus on our costs and streamlining the organisation to do

the right things at the right time and on-time. All unnecessary costs not

contributing to our immediate growth are basically cut off.

Essentially, starting off at zero in Q4 we have invoiced only for the fully

implemented customers about 700 KSEK. We no longer offer any free trials or

discounted contracts. Our product offering is strong and we do not experience

that any of our clients are unwilling to pay from the beginning. Therefore,

although these figures might seem somewhat low, with a levels that does not make

us profitable in the short term - they should be seen as the beginning of our

fundamental pricing and incomes, with each client fully invoiced earlier in the

implementation phase giving us more solid, predictable, reliable

incomes and growth. Additional to that, several customers were signed at the end

of the quartile leading to their revenue not contributing in the Q4 but in Q1 to

come.

Major revenue growth

We foresee a major client onboarding and revenue growth in the coming quarters.

Derived from the clients recently signed or about to be signed, along with our

strong pipeline via direct sales and our partners. This coupled with the

acquisition of Cloud Explorers and the ability to greatly shorten the length of

implementation period grants us an even faster tempo to our progress. In

addition to this we are in the process of acquiring several more companies in

order to broaden our offer and strengthen our position in the market. This

growth is not only making our company's future brighter, but the strength for

growth and our opportunities is becoming even more visible for me, and hopefully

also for every shareholder of this company.

Growth and acquisition strategy finally starting off

This week we have completed the financial plan required for us to implement our

strategy. The finalized plan grants us the opportunity to act goal-oriented with

clear and important foresight into what will come. It also gives our

shareholders relevant insights and a much  appreciated transparency of what lays

ahead us.

The following three aspects are of major importance in the financial agreement

we communicated yesterday

1.                   An opportunity to act on our highly ambitious acquisition

strategy

I. We start our acquisition tour with the acquisition of Cloud Explorers, a

highly successful tech-company we have worked closely with the last two years

II. With the presented financial plan we get the necessity strength to execute

on further strategic acquisitions without any additional rights issues

III. By strengthening our balance sheet, we also become more interesting for

major actors to cooperate and engage with in many ways

2.                   Strong funding secured

I. Having the continued support from existing major shareholder and new

professional investors investing in us secures our ability to accomplish our

strategy and commitment of growth

3.                   One company - tremendous resources, talent and

opportunities

I. Becoming one with our associated company we finally have the opportunity to

work with their many existing clients and broaden the services provided

II. SpectrumOne is profoundly strengthened with the offerings we can add to it

from Cloud Explorers services, hence increasing revenue streams

III. Synergies coming from the acquisition will directly affect our financials

positively from day one - reduced developing costs and increased revenue

IV. By becoming one company we can also allocate all of our resources to further

develop SpectrumOne into a service for the future were technologies such as

machine learning and AI-modules can become an integrated part of the platform

Our ambitions

This is indeed a very important crossroad for our company. A couple of years ago

The Economist published an article "The world's most valuable resource is no

longer oil, but data". The article emphasizes that today's world has made data

abundant, ubiquitous and far more valuable than any other resource on the

planet.  It states that ".collecting more data, a firm has more scope to improve

its products, which attracts more users, generating even more data, and so on."

Our contribution to this era of data is making it possible to act on the

resource most companies collect. We provide our customers with a unique tool

giving them easy yet unprecedented ability to work with and visualize their

data. This enables our customers to get a precise view of their customer

behaviors and drive smart decisions based on insights and powerful analyzes.

I have no doubt we are right on target and in precisely the right place to make

all of the above reality. We have begun a journey on which we have now taken our

first fundamental steps. I am looking forward to you joining us in the very

exciting times ahead of us.

For further information contact:

Hosni Teque-Omeirat

CEO

+46 70 225 18 77

hosni@spectrumone.com

Certified Adviser:

Mangold Fondkommission AB (556585-1267)

Box 55 691 102 15 Stockholm

Telefon: +46 8 503 015 50

ca@mangold.se

www.mangold.se

TargetEveryone AB (publ) is obligated to publish this information under the EU

Market Abuse Regulation. The information was provided by the above contact

person's auspices, for publication on February 18, 2020 at 4.20 p.m. CET.

About TargetEveryone

TargetEveryone is a MARTECH company, enabling our clients to streamline their 1

-1 digital marketing, content and experiences within one SaaS online platform.

Our unique solution makes marketeers able to easily target exactly the customers

they want, and communicate with them in the channels they prefer, to maximize

ROI. Our clients can easily segment their customers based on CRM data, market

data and transactional data. Further, they can use a campaign editor to quickly

build campaigns, and distribute these through our multichannel distribution

system either by Email, SMS or SMS landing pages. TargetEveryone´s headquarter

is in Oslo, with branch offices in Sweden, Holland and USA. TargetEveryone is

listed on Nasdaq First North Growth Market in Stockholm and Merkur Market in

Oslo.

www.targeteveryone.com