Annual Report for Sleep Cycle 2023: Significant Subscription Expansion Signals Successful Year
Q4 2023 and Full Year 2023 Summary for Sleep Cycle AB
- Net sales for Q4 2023 totaled tSEK 61,254, a 10.6% increase year-over-year, and currency-adjusted sales growth was 5.7%. The full-year 2023 net sales stood at tSEK 236,146, a 11.4% increase, with currency-adjusted growth at 3.1%.
- Operating profit for Q4 2023 was tSEK 12,689, amounting to an operating margin of 20.7%, though the margin was 31.1% when excluding a non-cash impairment loss of tSEK 6,341. The full-year 2023 operating profit was tSEK 56,606, representing a 24.0% margin.
- Adjusted operating profit for Q4 2023 was tSEK 12,689, giving an adjusted operating margin of 20.7%, and for the full year 2023, it was tSEK 61,437, resulting in an adjusted operating margin of 26.0%.
- Sleep Cycle ended Q4 2023 with 893k paying subscribers, down from 904k, and the average revenue per user (ARPU) for the quarter was SEK 272, while the currency-adjusted ARPU was SEK 260. For the full year 2023, ARPU was SEK 262.
- Earnings per share (EPS) before and after dilution for Q4 2023 were SEK 0.52 and SEK 0.52, respectively, while for the full year 2023, the EPS before and after dilution were SEK 2.28 and SEK 2.28, respectively.
Key Events During the Reporting Period
- Erik Jivmark became the new CEO in November, having previously worked at Volvo Car Mobility.
- In November, the Cough Radar feature was launched, providing real-time data on cough and cold development based on Sleep Cycle's data.
- An extraordinary general meeting in November approved an incentive program for the CEO.
- A strategic review led to Sleep Cycle Kids being discontinued, resulting in an impairment loss of SEK 6.3 million with no impact on future sales.
Post-Period Key Events
- Sleep Cycle announced in January that it would consolidate its operations to the head office in Gothenburg.
- The Board of Directors proposed a dividend of SEK 2.30 per share, totaling SEK 46.6 million, based on the number of outstanding shares as of February 7, 2024.
CEO Erik Jivmark's Comment:
"Reflecting on 2023, we can say that the positive trend from the third quarter continued. The number of subscribers increased in the fourth quarter combined with a 72.6% EBIT growth compared to the previous year. Our focus on product development, conversion, and cost-effective user acquisition has enabled us to turn around growth in the number of subscribers during the year while providing an improved user experience."
"I've been the CEO of Sleep Cycle for a few months now, and I'm confident in saying that the company has a strong market position, a popular offering, and an innovative team. During the spring, we will present an updated strategy focusing on increased growth. Over the coming year, our goal is to further strengthen our market position by increasing productivity in the company, leveraging more data, and delivering better sleep analysis worldwide.".
This information was released by Sleep Cycle AB according to the EU Market Abuse Regulation and is available on their website. Sleep Cycle's CEO, Erik Jivmark, and CFO, Per Andersson, will present an overview of the Q4 results on February 8, 2024, at 9:30 CET. For more information, contact Erik Jivmark or Per Andersson at their respective email addresses or phone number.
With millions of daily active users and over two billion nights analyzed across 150+ countries since its launch in 2009, Sleep Cycle is the leading sleep tracking application. Its mission is to improve global health by enhancing sleep quality. The company contributes to worldwide sleep research and reporting. Sleep Cycle is listed on the Nasdaq Stockholm exchange under the ticker SLEEP, with its head office located in Gothenburg, Sweden.
Source: Sleep Cycle AB's financial releases and various investor-related websites
[1] Financial forecast data for Sleep Cycle AB from Investor Intellige.
[2] Financial forecast data for Sleep Cycle AB from Trading Economics.
- In his comment, CEO Erik Jivmark mentioned an updated strategy for increased growth, which could potentially involve expanding into new markets and developing new sleep-related gadgets or smartphone apps.
- As a leading sleep tracking application, Sleep Cycle's efforts in research and development may also extend to creating advanced technology solutions, including smartphones, wearable devices, and AI algorithms, to improve sleep quality and analysis.
