Total ARR was SEK103.9m (63), of which SEK75.1m (31.0) was SaaS. Our forecasts (before the preliminary figures was released) were SEK96.8m and SEK66.3m. The q/q increase of SEK20.8m in SaaS ARR was by far the highest level, compared to SEK10.6m in Q3 and SEK~6.5m per quarter in H1 2024. The level is almost in line with what is needed to reach the ambitious SEK200m ARR target for the end of 2025, which now seems within reach. Adjusted EBITDA-CAPEX was SEK-8.1m (-15.4), better than our forecast of SEK-12.8m. Teneo AI has proved that API calls scale over time and that higher volumes do not drive OPEX.

During the quarter, Teneo AI signed several new partnerships, including Business Systems Ltd (UK), Kenway (US), AppDirect (US), InterVision (US), and NWN Carousel (US). In addition, during Q4, Teneo AI strengthened its cooperation with Genesys, a leading contact center software player. The partnerships, especially the one with Genesys, will strengthen Teneo AI’s go-to market, particularly in the US. As stated in previous Updates, we believe successful partnerships are key to obtaining cost-efficient growth as a small company with a scalable offering targeting a global market. Thus, we take a positive stance towards the new partnerships.

We increase our Base Case somewhat to SEK1.4 (1.3) due to slightly greater confidence in Teneo AI's mid-term growth prospects. We believe Teneo AI is one of the SaaS cases with the highest potential/risk listed in the Nordics – where this quarter tilts the probability towards reward following the accelerating and scalable growth. On a positive note, it is very scalable, has 99% recurring revenue, and is among the global leaders in its niche, with several global giants as customers, implying substantial growth potential at a limited cost. On a negative note, it is not profitable (although we expect it to be in Q4 2025) and has a high portion of debt (although cheap financing until refinancing) relative to its market cap.