iZafe Group Q1 Interim Report, January-March 2025
STOCKHOLM, SE / ACCESS Newswire / April 25, 2025 /iZafe Group (STO:IZAFE-B) - iZafe Group AB (publ.) presents today, April 25th, its report for the first quarter.
Financial Performance in Summary
Total net revenue for the quarter amounted to 1,318 TSEK (3,410), now primarily consisting of recurring license revenues. This contrasts with the same period last year, when revenue was mainly driven by hardware sales, which in turn enable the generation of these recurring license revenues.
Operating result (EBIT) for the quarter amounted to -3,519 TSEK (-5,569).
Operating result before depreciation and amortization (EBITDA) for the quarter amounted to -2,538 TSEK (-4,588), a clear improvement despite lower revenue compared to the same period last year. This reflects a more profitable revenue mix and increased operational efficiency.
Result after financial items for the quarter amounted to -3,779 TSEK (-5,609).
Cash flow from operating activities for the quarter amounted to -7,013 TSEK (-4,109).
Earnings per share for the quarter before/after dilution amounted to -0.01 SEK (-0.02).
Equity per share at the end of the period amounted to 0.04 SEK (0.08).
The equity ratio at the end of the period was 53.2% (67.5%).
Significant events during the quarter
iZafe Group has completed a directed share issue of approximately SEK 9.2 million through the issuance of 46.15 million B-shares at a subscription price of SEK 0.20 per share. The capital will be used to strengthen working capital, accelerate growth, and support the expansion of Dosell and Pilloxa into new markets.
iZafe Group AB has initiated the sales of Dosell in Spain through its partnership with Ti-Medi. The product is launched under the Savioo Home brand and is now available through Ti-Medi 's network of over 1,500 pharmacies. Dosell enables automatic reminders and alerts in case of missed medication, improving adherence and safety for patients and their families. The launch marks an important milestone in iZafe Group 's international expansion.
iZafe Group AB has entered into an agreement with Carnegie Investment Bank AB as its new Certified Adviser. Carnegie will assume the role on April 1, 2025, and until then, Mangold Fondkommission AB will continue to serve as the company 's Certified Adviser.
Significant events after the end of the quarter
iZafe Group AB has continued to grow during the quarter with an increase in billable Dosell units and strong demand in Sweden, the Netherlands, and Spain. Three new municipalities have initiated operations, the partner TCCN is launching Dosell TV in the Netherlands, and over 50 pharmacies in Spain have joined the Savioo Home concept. The company is experiencing growing commercial momentum and is engaged in discussions with new partners for continued expansion.
Forecast
In this report, we present a forecast graph illustrating our expected growth in both ARR and active Dosell units over the coming years. The forecast is based on our current markets and key performance indicators, outlining a clear path toward an exponential increase in recurring revenue as more units become activated. By the end of 2024, our ARR reached approximately 1.7 MSEK, reflecting a 326% increase compared to the previous year.
In 2025, this growth is expected to accelerate further, with ARR projected to reach 10 MSEK by year-end, a 352% increase. Beyond that, ARR is expected to continue growing rapidly, more than eightfold by 2029, when we anticipate exceeding 85 MSEK. We will track this forecast on a quarterly basis to provide our shareholders with a clear view of our actual progress and how we are advancing toward our financial goals.
2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
ARR (MSEK) | 0.3 | 1.7 | 10 | 22.5 | 42.3 | 63.9 | 85.5 |
Growth of Dosells | 0% | 467% | 488% | 125% | 88% | 51% | 34% |
Comments from the CEO
2025 has started strong for iZafe Group, and we are now entering the next phase of our growth journey. We can clearly see how previous deliveries of Dosell to our partners are now bearing fruit in the form of recurring license revenues - the most profitable part of our business model. Our focus on scalability, recurring revenues, and international expansion is beginning to show tangible financial results.
During the first quarter, the number of active Dosell units has continued to grow rapidly. It is now - as these units are activated and used daily - that we are realizing the value of the investments and deliveries made throughout 2024. Our ARR at the end of the quarter surpassed 3 MSEK, confirming that we are on track to meet our financial targets for the year. This development is fully in line with the growth forecast we presented in the previous quarterly report and clearly shows that our business model is scaling as expected.
The shift towards recurring revenues improves profitability
Even though net revenue in Q1 2025 (1.3 MSEK) is lower than the corresponding quarter last year, the result has improved significantly. This is thanks to a larger share of revenues now being license-based with high margins - a direct effect of the increased activation rate among our partners. Operating profit improved by more than 2 MSEK compared to Q1 2024, providing clear evidence that our strategy is working.
We have now established a recurring revenue model that is scalable, predictable, and profitable. As more Dosell units are activated, revenues grow without a corresponding increase in the cost base - a powerful shift that lays the foundation for cash flow positivity and long-term profitability.
Momentum across multiple markets
During Q1, we have continued to increase our presence and demand in our key markets:
- Sweden: We have now launched Dosell in 14 new municipalities so far this year, with several more in the pipeline. An increasing number of municipalities are moving from pilot projects to full implementation, demonstrating that we have found the right fit in both product and offering. Demand is driven by safety, simplicity, and increased efficiency in home care services.
- Netherlands: Our partner TCCN has reported continued strong activation rates, including 72 units delivered to their customer MobileCare during March. The launch of Dosell TV and exposure at trade fairs are creating additional momentum. The Netherlands is now a mature growth market for us.
- Spain: Our Spanish partner Ti-Medi has officially launched Dosell as part of its Savioo platform. Over 50 pharmacies have already joined the concept. This gives us access to a rapidly growing market with a high proportion of dose pouch users and strong demand for digital solutions.
Strengthened liquidity after the end of the quarter
At the end of the quarter, cash and cash equivalents amounted to approximately 0.7 MSEK, reflecting the investments we have made to accelerate our expansion. However, it is important to highlight that half of the previously communicated directed share issue of approximately 9.2 MSEK was received by the company in April. This means that our cash position has been significantly strengthened after the period, creating better conditions to continue executing our growth plan.
Focus on real impact - and what truly matters
We now have strong momentum in the business, with the number of Dosell units loaded with medication and dispensing daily increasing month by month. This development forms the foundation for both our long-term growth and the societal benefit we aim to deliver.
Our most important key metric is not simply how many units we have sold or are billing licenses for, but how many times we have ensured correct medication. So far, we have surpassed over 400,000 doses dispensed at the right time - each dose representing a moment of safety for the user, reduced strain on healthcare providers, and improved adherence.
A new phase - moving full speed ahead
In a short time, we have established a product that is in demand, a scalable business model, and a clear growth strategy. During the quarter, we have further improved the product with a new software version, maintained our cost focus, and strengthened our customer relationships. The momentum we now see - both in actual usage and business development - is clear evidence that something has shifted.
In parallel, we continue to engage in discussions with new potential partners, both in existing and new markets, with the aim of expanding our presence and reaching more patients through the right local collaborations.
We are entering a breakthrough year where the focus is on continuing to scale, streamline operations, and create value - for our users, partners, society, and our shareholders.
Thank you to all employees, partners, and shareholders who make this journey possible.
Anders Segerström
Chief Executive Officer, iZafe Group
Contacts
Anders Segerström, Chief Executive Officer
E-mail: anders.segerstrom@izafegroup.com
Phone number: +46 70-875 14 12
iZafe Group AB (publ.)
David Bagares gata 3
111 38 Stockholm
E-mail: ir@izafegroup.com
www.izafegroup.com
eucaps.com/izafe-group
About iZafe Group AB (publ.)
iZafe Group is a Life Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management at home.
The company leads the development of digital drug dispensing through the drug robot Dosell as well as the SaaS solution Pilloxa with the smart pillbox. The company 's solutions reduce the risk of incorrect medication in the home, increase compliance, relieve public health care, increase the quality of life for patients and create a safer environment for relatives.
The customers consist of private individuals, pharmaceutical companies and public and private healthcare providers in Sweden, the Nordics and globally. iZafe Group primarily sells through well-established partners who already have long and deep customer relationships with the prioritized customer groups. The head office is in Stockholm.
iZafe Group AB has been listed on the Nasdaq First North Growth Market since 2018. The company 's Certified Adviser is Carnegie Investment Bank AB (publ). Further information is available at www.izafegroup.com
This information is information that iZafe Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-25 08:30 CEST.
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Interim Report Q1 2025
CEO interview
SOURCE: iZafe Group
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