BIMobject AB ($BIM)

Hello, everyone. Welcome to this call. Thank you for joining us today. We are getting ready to present our Q1 report for you. As usual on these calls, you can ask questions to us here in the chat in Zoom webinar or you can send them via e-mail to [email protected]. And as usual, we pick up all the questions at the end of this call. We have some questions coming into the e-mail already. So we'll answer all of those at the end of the call. But let's kick it off and get started. So like I mentioned, the Q1 presentation. And today, you will hear from Niklas Agevik, who's the CEO of BIMobject. Welcome, Niklas.

Thank you.

We are also joined by Per Goransson, who's our CFO. Welcome back.

Thank you.

And my name is Lisa, and I'll be hosting the call for you today. So on the agenda, we will have a business update from Niklas, followed by some financial numbers from Per. And as I mentioned, we always wrap up the call with some Q&A at the end. So send your questions to [email protected] or post them to us here in the chat. But with that, I will leave the word to you, Niklas.

All right. Thank you, Lisa. Hi, everyone. Good to be back. My second quarter report here, did my first one, second week on the job. And what I further do here, I'll do a quick update on the numbers for Q1. And then I'll talk a little bit about my reflections, thoughts from first 3 months with BIM, why I'm excited about it, why I think we're all excited about what we're doing here and some thoughts on strategy and what's going to happen next and what we're working on. So I think we had a good quarter, ARR growth of 10% compared to last year, which also then meant that was a positive turnover growth. We had some headwinds from the currencies, but overall, I think a good growth. We had a smaller loss. We went from minus SEK 18.1 million last year to minus SEK 8.6 million in this quarter. We did have some one-off effects on restructuring last year, but Per will talk more about that when we get to the financials. And we ended the quarter with a good cash position of SEK 152.6 million in assets. On the events, of course, a big event. I started here 2nd of February. And again, I'll talk a bit of my thoughts here and what I've been doing on the first 3 months. And I spent a lot of time thinking about how we are going to work, how we can move faster, how we can get great products out sooner, which led into this reorganization that we also touch upon. So yes, let's go through a couple of my thoughts here after joining BIM. And as you know, I mean, the core of BIM and what we founded the company on was to become this marketplace for BIM models. And we've done a fantastic job in building that business, bringing on manufacturers and distributing all of their models to the AEC community. I mean, basically helping Architects, Engineers, consultant -- Constructors who need that for their buildings. But what we discovered, and I think we discovered this a few years ago is that it was just not the BIM models that they wanted us to distribute. There was a lot of other data that they were handling and that they needed to distribute. I mean, everything from technical properties of if it's a door, it can be the height of the door, how thick the door is, what kind of material the door is made of to climate data, what is the climate impact of building that door or whatever it is. And what we discovered is that from the manufacturer side, they were actually even more interested in having all of this data distributed. And this, of course, led us to the Carbon Zero acquisition and researching this more. And it turns out that this is a pretty huge problem that manufacturers in the building industry suffer from because with every new project, with every new market, there's more databases to be part of, there's more requests for data. And that's a need that just keeps increasing. There come new regulations, there come new requirements from constructors because they want to work faster and more efficient and with less waste. And then we have EPDs that are reported -- and environmental report that all of the manufacturers have to create. And even if you did spend the money at the time to create an EPD, that's not enough because in a couple of years, that's going to be replaced with a DPP, a digital product passport. And as you're a manufacturer, I mean, you're launching new products, you're going into new markets, this just becomes more and more costly. So when we talk about -- talk to them and we say, what if we could handle all of your data, I mean, they get pretty excited, like that's something that we want. So again, leading up to the Carbonzero acquisition and what we've been doing here, that is something that we're pretty excited about doing that we think is a very important thing for our future growth. And this might look simple, right? Like we have the BIM models today. We already distribute that. Why can't we just add more data onto this and just continue to distribute it. Well, and that is the question that I've been talking with the team a lot about. How can we make this more efficient? How can we do this faster? How can we ensure that we handle all this new data that the manufacturers are requesting. And that led us into these business areas because the products that we have, the customers that we are targeting and the different markets we are in, they are all in different maturities. The type of customers we are going after can vary quite a lot. I mean, if we are distributing a BIM, for example, sometimes that's the marketing department who handles that as a marketing effort to reach out to architects, -- while if we deal with compliance data or climate data, that can be data that's handled by somebody else in a different department. So the idea behind organizing around these business areas is that we give each part of the business room to grow. We have business area Design Enablement. That's the BIMobject that's the core of BIM and makes up, I think, about 90% of our revenue today. That's a great -- it's a profitable business that's established, and that's how we want to keep running that. We want to run it as a profitable established business, and we want to make sure that it continues to grow. Meanwhile, Data Solutions, that's our business area where we handle all of this other data. Here, there's a different maturity on the products. I mean, we are still building it. We want to get this into start-up phase where we're moving fast and where we're working towards clear milestones where we show that we can handle more and more data and therefore adding value to both the data consumers and to the manufacturers. And to answer one of the questions that came in about these business areas right away, I mean, we're still operating this as one country. I mean, we have shared IT, we have shared marketing, shared HR, I mean, shared as much as we can. So you shouldn't see this as adding additional overhead. It's more a way of driving the business and thinking about the strategy. Yes. And in the reorg, and I want to stress that leading up to this reorg and this is where I've spent most of my time since joining here in February is figuring out how we can move faster to handling more data. And this reorg came out of that discussions to understand what do we need to do to move faster. And I spent a lot of time talking with the management team, with the Board, with leaders in the company and almost everyone said that like we're trying to do too much at the same time. Let's make sure that we do a couple of things and we do them great. And at the same time, we've been using more and more AI, we probably don't have to be as many people we are today to deliver on this tomorrow. So that was the basics behind this. Yes. So -- but with that in place, I think I can hear some people asking, you've been -- we've heard this story before. You want to do more data. What's taking you so long? Like why aren't we already there? Why aren't we already distributing more data? And I think I want to stress that I mean the team has been doing a fantastic job. I think now we're going to move even faster, but we have been solving a couple of extremely important and fundamental problems during this time to be able to actually deliver on this vision. And at the core of it is that what we're trying to solve here is really a 2-sided marketplace problem. We have, on one hand, we have the manufacturers that want us to distribute their data. And the other hand, we have the consumers that need that data. It can be an industry database. It can be a constructor that needed data during construction of a new building or it can be a distributor of different products. But the problem here has been, as we've approached manufacturers with this, they tell us this sounds great. We love this, but like how many consumers do you have on the other end? And the answer has been, we don't have that many yet. We're working on it, but we don't have that many yet. But if you join, they're probably going to come. And they tell us then that, okay, that sounds good, but come back when you have more consumers. And then when we go out to the consumers and we say, "Hey, what about you could get all of this data from all of your manufacturers in one single place." They say, "Oh, that sounds great. We love that, how many manufacturers you have?" And we say, well, not that many yet, but if you join, we can sign them up. And many of them have said, okay, that sounds great, but come back when you have the manufacturer. So that has been something that has slowed us down, the chicken and egg problem and something that we've spent a lot of time trying to solve. And to understand how we've been working on solving that, I need to explain the type of data that we're dealing with here. And we're basically dealing with 3 types of data. The first type is primary data. And that's the manufacturer that has come to us, they have given us their data. This is the best type of data that we can have. It's approved by a manufacturer, and we have primary data from many manufacturers already. The first thing we did to solve this chicken and egg problem was with the Connect problem -- sorry, with the Connect product, where we're starting adding generic data. And generic data is not the data -- not about one particular product, but a group of products. So to give an example, like if you're a distributor, you want to know the climate impact of a specific door you have. The distributor can then sign up to us. They can request data about the door. And if we don't have that specific door in our database, we provide generic data from a database. And there is -- for example, in Sweden, there is a database that everyone can use and then we use that data. And if we have the primary data, we use that. And that actually solved part of that chicken and egg problem and led us to starting to sign up more and more consumers. And that led us thinking, okay, what more can we do? How can we make this even more attractive? How can we get even more data consumers in on the other end. And that's where we saw the GreenMetrica acquisition coming in because a lot of this data is actually already available online. And we have spent a lot of time building an AI agent that can go out and gather data from the web. It can go to manufacturers site, it can read an EPD, and it can input that data and it can send it to consumer. And the feedback that we've received is that this is fantastic. This is very much in line with what the data consumers want. And that's a great way to get them started and get more manufacturers interested. So basically, in Data Solutions, the loop here that we're trying to build is where we can gather that data -- it can be secondary data, it can be primary data. We get consumers to use the data. We get more demand for primary data because now we have a lot of data consumers, then we get more manufacturers to join. And as we get more manufacturers, we get more primary data. And we get more primary data, this loop closes even quick to you. So that's something we've been very hard at work. And as I mentioned with on the reorg, I think this is something that we're executing on a lot faster now. And I see very positive signs here on how we're executing and moving forward on closing this loop. And just also mentioned, I mean, we -- if you see all of these partnerships that we announced, this is what they are about. They are showing that we can add more data consumers. I mean we recently announced the Swedish Building Materials merchants, for example, as a consumer of data, and that just makes us more and more attractive to manufacturers. So yes, I think that's a summary of what I've been up to here in the first 3 months and what we've been up to and how we view the strategy. I think we're very excited of where we are now. Now I think it's just full on execution mode, showing that we can grow both on design enablement and continue to close this loop on the data solutions side. Yes. And with that said, I hand over to Per, our CFO.

Thank you, Niklas. We can jump into our revenue development. So we have a quarter with a tough currency effect, when we compare year-over-year. USD started to weaken in spring 2025, which is visible in the first 2 bars here in the graph. Year-over-year, we lost about 8% in revenue due to currency. ARR in constant currency is at plus 10%. But as recognized revenue adjusted for currency effects, growth is at plus 14%. That is due to good performance on bimobject.com as of 1st of January, which gives full effect in the quarter. Services revenue decreased not only due to FX. It's also due to a particularly strong Q1 2025 and our main focus on the platform revenue business. And here is the graph showing how our total ARR is distributed on the more mature bimobject.com business, Design Enablement and the new products, respectively, which we call Data Solutions. And Data Solutions, that is where we've made the significant investments in the potential we see going forward. On the cost side, operational costs decreased 16% in total. This is largely due to temporary high costs in Q1 2025. That was related to CEO transition, social security fees related to LTIP and the currency revaluation effects. But just as much cost decrease due to overall less FTEs and less external consultants. Cost items that did increase somewhat, it's related to software and AI computing costs. And looking forward, we expect operating cost base to continue and decrease and primarily driven by the recently announced reorganization. All in all, we see underlying growth in recurring platform revenue, but it's offset by currency effects and less service revenue. Hence total net sales is relatively flat. The significantly decreased loss is thanks to decreased operational costs. And while we also continue to invest in new product development that is done through a more cost-efficient organization going forward. EBITDA at minus SEK 8.6 million and EBIT at minus SEK 12.4 million.

Great. Thank you, Per. Yes, I think that sums up the quarter well. I mean we are seeing the effects of the changes we made last year with just under reorg and going through that now, which we're also already seeing positive signs for it. I think we're at a good place already. But I think with these recent changes, we'll be moving even faster. So I think we're excited about where we are right now.

Excellent. And as promised, we will now have a Q&A session, where we'll answer the questions that everyone has sent in. So as usual, we'll jump between subjects in these. And I think, Niklas, you maybe have already answered 1 or 2 of them that were sent in before the call. But let's go through them. So if we start with this question, are you starting to see network effects of Connect, Driving, Compile? Specifically, are wholesalers putting pressure on manufacturers to upload specific environmental and product data?

I don't think we're there yet. We've seen some early signs of this, but a big part of the reorganization here is to drive that loop and get that loop working faster. So I think it's something we have to get back to.

And on that topic, how many active Connect customers do we have outside of Sweden? And which markets would be next in line for that product?

We have some customers that are in -- outside Sweden. And a lot of the customers that we already have in Sweden do have presence in other countries, mainly in the Nordics. For now, Data Solutions and thereby also Connect is focused on the Nordics. We will see what the next market is outside the Nordics, but we want to start by focusing there.

Great. Then we have another question here. What percentage of our existing manufacturers -- manufacturer customers are currently using more than one product? Can we provide examples of customers who started with one product and that is now active across the ecosystem?

Yes, that's a good question. I think we certainly can mention customers that use several of our products. But I think it's a bit too early for us to do that. Data Solutions, that is in a start-up mode. We're trying to hit some milestones to show that this works and that we can continue to grow it. So I think it's too early for us to focus on the cross-selling part. We want to get -- make sure that we get those products in the place where we want to be first. But I mean, definitely something we will come back to in the future. But I don't think we're there yet where that's a big focus for us on cross-selling products. But that said it's already happened, a few customers are doing it, but that's not the focus for now.

All right. So can we, as a company, report on more data points or KPIs between the quarterly reports so that shareholders can see, for example, how Connect and other products developed?

Between the quarterly reports, I don't know about that. But part of the reasoning behind the split between Design Enablement and Data Solutions is that we see that the way we track them and that we see early data points that we're moving in the right direction are very different for those 2 business areas. So I think, yes, I mean, internally, we're definitely using different data points to track them. Can we share them between reports? I don't know, I'll have to get back to that.

Or you can turn in on the next quarterly report and hear more details at that point. All right. So when will the new platform replace the old one?

Which platform does this refer to. Okay. So you mean in Data Solutions. I mean I don't think there's a specific -- we've been doing this customer by customer. I don't think we have a specific date where we need to close it down. But slowly we will start moving over to customers, I guess, is the answer. I think it will take some time before we close it down completely. That's not a goal in itself to have it closed down.

And now we have some questions related to more numbers. So what is the NRR and that stands for net retention for each respective product category?

Yes. I mean we don't report on our NRR metrics for different products for now. So yes, I think we just pass on that one.

So another then, what does the churn look like? And are we seeing a decrease in churn giving new products? And if so, to what extent?

Yes. I mean I'll split this question between the business areas. I mean, in Design Enablement, I mean, we mentioned this on the last quarter call, too, we do see positive pattern in retention. This has been trending in the right direction. We believe this is thanks to the focus we've had on customer relations since the reorganization last year. Data Solutions, I think it's too early to start thinking about churn and -- or at least talking about churn in that way, but definitely a metric we track going forward, I'd say.

Next question is ARR grew 2.3% sequentially, which is slower than Q4. Can you explain if there are any timing prioritization effects in Q4 that may not fully reflect underlying commercial momentum, for example, contract renewals, new product revenue recognition, currency revaluation or constant currency baseline? Maybe this is a question better answered for Per. Let me just move the mic so we can hear you.

I would say no specific timing effects and such disturbing elements. No currency effect. ARR is tracked in constant currency. Q4 was relatively strong, also fueled by a few individual contracts. And Q1 is historically a slower season, but nothing disturbing in the development as such.

Thank you. And I think we can keep the mic on you for the next one as well, Per. So next question is also related to ARR. Question is, at what ARR level will you be cash flow neutral? And related to that, what is your outlook on cost development moving forward? Stable, decreasing or slight growth?

Good question. And I will not be ready to say an exact figure here, but we're in the middle of a reorganization, and we are reducing the cost base. There are still some activities related to this outstanding, and we will see where we end in terms of new run rate after that. But clearly, we will need some growth as well to reach profitability. In general, I believe we will be ready to grow with good scalability from the new cost base that I can say.

Thank you, Per. So we're getting to the end of the question, but we have 2 left here. Where are you placing the commercial emphasis for the different segments during 2026 in terms of both product and geography?

For Design Enablement, it's a continuous focus on North America and EMEA. On Data Solutions, the focus is the Nordics.

And then final question that I picked up on this call. I'll do a quick sweep to see if we have any other. But the question is then, what is the revenue model per wholesaler? So is it a fixed license, volume-based or hybrid model?

It's mainly volume-based, but with a small fixed yearly license fee. The volume-based pricing is based on the number of SKUs that they purchase data for.

Thank you. So from what I can see, we capture all of the questions on the call. Like we usually say on these calls, our e-mail is open. So [email protected] is where you can reach us if you have more questions or want to get in touch with the team. And yes, also follow us on LinkedIn. We have separate LinkedIn profiles for our different products where we post a lot of updates on what's going on with our respective products. So that is also a good channel if you want to stay in touch and stay updated with what we do. Otherwise, thank you for everyone joining the call. Thank you to the panel, and we will hear -- you will hear from us again during the summer for our Q2 report. Have a lovely rest of your Thursday. Thank you.

Thank you.

Thank you.