Sinch AB: Interim report, January-June 2023

April - June 2023

Net sales increased by 6 percent to SEK 7,021m (6,615).

Gross profit increased by 20 percent to SEK 2,322m (1,937).

EBITDA rose by 36 percent to SEK 715m (528).

Adjusted EBITDA[1] increased by 72 percent to SEK 865m (503).

The loss after tax for the quarter was SEK -70m (-40).

Basic earnings per share were SEK -0.08 (-0.05) and diluted earnings per share were SEK -0.08 (-0.05).

Cash used in operating activities was SEK -13m (668).

"The second quarter marks improvement throughout our business with robust profitability and improved organic growth in both revenues and gross profit."                                                                                                              - Laurinda Pang, CEO

January - June 2023

Net sales increased by 6 percent to SEK 13,948m (13,164).

Gross profit increased by 14 percent to SEK 4,582m (4,033).

EBITDA rose by 20 percent to SEK 1,408m (1,176).

Adjusted EBITDA[1] increased by 34 percent to SEK 1,698m (1,264).

The loss after tax for the period was SEK -148m (48).

Basic earnings per share were SEK -0.18 (0.06) and diluted earnings per share were SEK -0.18 (0.06).

Cash flow from operating activities amounted to SEK 199m (809).

Significant events during the quarter

Laurinda Pang acceded as the new CEO of Sinch on 17 April.

The Annual Report (https://investors.sinch.com/reports-and-presentations) for 2022, including the company's Sustainability Report (https://investors.sinch.com/reports-and-presentations) was published on the company's website on 21 April.

It was announced on 25 May that Sinch was named a leader in IDC MarketScape for CPaaS. (https://investors.sinch.com/press-releases)

Sibito Morley (https://investors.sinch.com/press-releases) was appointed the new Chief Data and Transformation Officer on 6 June.

Sinch launched AI-powered Smart Conversations (https://investors.sinch.com/press-releases) that provides business customers with invaluable insights into customer journeys and customer intent.

As an element of the branding process, Inteliquent was replaced with "Sinch (https://www.sinch.com/products/voice/voice-services/?UTM-Inteliquent&fbclid=IwAR0dvNti3ZpCH-DtUVb0O5xEM8nymkPLlvl-xI9Ha5ZKX2GZNJEbRrtJr9I)" and MessageMedia with "Sinch MessageMedia."

The cost reduction program initiated in July 2022 has achieved the savings target communicated when the program was announced. Gross savings total approximately SEK 360m on an annual basis, exceeding the target of SEK 300m.

Significant events earlier this year

On 12 January 2023, credit facilities of SEK 6,500m and USD 110m were extended by one year. The new maturity date is February 2026.

Sinch launched "Operator Connect for Partners (https://investors.sinch.com/sv/news-releases/news-release-details/sinch-announces-operator-connect-partners)" on 23 March, which makes it possible for service providers and other partners to offer voice calling services via Microsoft Teams.

1) Adjusted EBITDA is reported to clarify performance in underlying operations. See Note 2.

Invitation to webcast and phone conference
Sinch will present the interim report in a webcast and phone conference on Friday, 21 July 2023 at 14:00 CEST. Watch the presentation at investors.sinch.com/webcast.

Follow the link below to register to participate via phone conference. After you register, you will be given a phone number and conference ID to log into the conference. https://conference.financialhearings.com/teleconference/?id=200888

For additional information, please contact:
Ola Elmeland
Investor Relations
+46 72 143 34 59
[email protected]

Thomas Heath
Chief Strategy Officer and Head of Investor Relations     
+46 72 245 50 55
[email protected]

Roshan Saldanha
Chief Financial Officer
+46 73 660 24 19
[email protected]

About Sinch
Sinch powers meaningful conversations between businesses and their customers through its Customer Communications Cloud. More than 150,000 businesses - including many of the world's largest tech companies - rely on Sinch and its global super network, which is the most secure and reliable network for messaging, voice and email. Sinch has been profitable and fast-growing since it was founded in 2008. It is headquartered in Stockholm, Sweden, with shares traded at NASDAQ Stockholm: XSTO:SINCH. Learn more at sinch.com (https://www.sinch.com).

Note: Sinch AB (publ), is required to publish the information in this interim report pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was released for publication by the contact person above on 21 July 2023 at 07:30 CEST.

This report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply. This report has not been subject to review by the company's independent auditors.