Storytel AB (publ)

STO:STORY B

Earnings Call Transcript 2020-Q3

[Jonas Tellander, Founder, CEO & Director]

Thank you, and good morning, everybody. So we're going to go through the Q3 2020 report. And with me -- I'm Jonas Tellander, CEO, Founder of Storytel. And on my side, I have our CFO, Interim CFO, Jorgen Gullbrandson and our Chief Commercial Officer, Ingrid Bojner.

[Jorgen Gullbrandson]

Good morning, everyone.

[Ingrid Welinder Bojner, Chief Commercial Officer]

Good morning.

[Jonas Tellander, Founder, CEO & Director]

So let's flip to the next slide. And we have the subscriber growth of 35% (sic) 34%, up from the year ago quarter, and revenue growth, 23% revenue -- streaming revenue, 23% up from the year ago. Next slide. And this amounts to SEK 609 million in total turnover for the Q3 quarter. We also made during the quarter, a number of acquisitions, no less than 4. We go through them in a bit later. But first, I'll hand over to Jorgen to walk us through the next slide with all the numbers.

[Jorgen Gullbrandson]

Thank you, Jonas. So looking at all the numbers on Slide 4, you can see that we booked a revenue for the group for the streaming businesses of SEK 490 million, as we have reported before. Happy also to announce that we do the highest contribution profit ever of SEK 113 million, almost SEK 114 million in the period. Contribution margin of 23% and some. The great contribution profit and also the high revenue generates even a positive EBITDA margin in the quarter. Internally, we call it a small accident, but it's fun to see that when we -- after we started activating our audiobooks production and also our tech development in the group, the EBITDA margins came up substantially. And in Q3, where we had slightly lower marketing than usual. The contribution margin from us been even could book an EBITDA profit for Q3. This is fun, but as we point out in the report, this is not the thing that you should expect happen regularly going forward. But somehow, it's an evidence of our business model anyhow. We saw the paying subs coming in at 1.36 million in the period and ARPU at SEK 120. This is good. This is driven by growth when it comes to revenue. It comes mainly from the Nordic countries, where we are almost up at SEK 400 million in Q3 with a really good contribution profit there, SEK 125 million and a margin of 32%, now above 900,000 paying subs in the Nordic countries and with a healthy ARPU of SEK 146 as well. Almost even more fun is to look at the non-Nordic countries where we approached SEK 100 million mark, SEK 96 million in Q3. Of course, having a slight negative contribution profit, but then we should remember that these are the markets that we really do invest in marketing and growth and staff and whatever we do in all these countries. So still happy to see these numbers. And we can see that the average paying subscribers for the period, they are then over 450,000 -- 458,000 in the period. Lower ARPU in the non-Nordic countries, of course, because these are economies with lower purchasing power but as you know from before. If you look at the graphs, as you can see, they all point in the right direction, which they should, increasing and going upwards to the right. Also giving a forecast. As you saw for Q4, the last quarter of the year, coming in at almost SEK 0.5 billion in revenue in Q4. A bit sad, that we couldn't record a [ 5 number ] before, but this is actually what our models project so let's keep it at SEK 499.5 million. Also growing the subscriber base. This is what we foresee for Q4 with another 75,000 paying subs in this period. Taking a small hit on ARPU, which also, of course, affects the revenue and this is driven by the fact that we have kind of, you could say, the good news. We have a very strong Swedish krona compared to our significant currencies. Looking at the Nordic currencies, like the Norwegian krone, Icelandic Krona but also compared to many of the weaker currencies, like Turkish lira, et cetera. So it's good for Sweden, but bad for the reporting numbers of Storytel. We also have another positive news in this one, and that is that we are successful in converting our existing users into as family subscription. And as you know, we've said it before, this drives down the ARPU because we divide the money that we get in with more people, but it still means that we get more money in. We get them more to stay on our service, which drives down the churn. So our LTV for these customers are positive. So happy to see that even.So looking at the Nordic and non-Nordics. We see almost similar growth rates. Of course, we grow most in the non-Nordic countries where we see that we will add more than 60,000 people to the company reaching 500,000 paying subs at the end of the year. And this is as far as we see it today, based on the exchange rate that we have today. So let's hope for a weakening Swedish krona. Okay. Next page, please. And during the third quarter, we completed a number of acquisitions, one being the acquisition of the Arabic streaming service Kitab Sawti. That's now been completed, and those numbers are in. We have now a huge catalog of Arabic speaking audiobooks of close to 5,000 titles, and are preparing to ramp up by marketing activities there in the coming quarters. We also completed the acquisition of iCast, the Israeli premium service on October 1, and we expect to launch this towards the end of the first quarter. And also here, we have a very strong Hebrew catalog that we hope will stand very strong next to also Russian catalog and to be able to launch that market in 2021. Then Norstedts Förlagsgrupp made a small acquisition of a literary publishing house Bromberg, run by both Bromberg. And this is, I think, very exciting for the publishing house. And then looking at expansioning it, Ingrid, are you there?

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes. We're happy to have announced that we will be expanding in Thailand in the next quarter or in the fourth quarter. So in a couple of weeks, we will open up our service for the Thai public. And that's very exciting. That's also strengthening our presence in the APAC region where we're continuously expanding. And then on October 28, we launched our service in Belgium. And that is extremely fun launch because we are actually doing it also from our Amsterdam office. So even though this is, of course, a localized service for the Belgium public, it's still an effort in combination with our people on the ground in Sweden on the -- and also on the ground in the Netherlands.

[Jorgen Gullbrandson]

Cool. May I just add -- this is Jorgen, a little bit quick there in the beginning. Because during the quarter, we also entered into an agreement to acquire a 70% majority interest in Iceland's leading book publishing house Forlagið as well. It's not in the books yet because we are going through the competition authority approval processes in Iceland. We hope to see that completed in Q4 or in worst case in Q1 2021. And we also acquired an 80% majority interest in Earselect. It's a audiobook production company, Sweden-based but good business all of the Nordics, which we think will be important to the company going forward.

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes. Thank you. So all in all, in our Capital Markets Day, we announced that we were going to launch at least 1 to 3 countries. So Belgium and Thailand will be those countries to be on the target there. Next slide, please. So what about content? Well, even though the world has been in distress over this 2020 with corona and COVID virus affecting us all, I think creativity has not lost its purpose. And we are very happy that we've collaborated with one of the most renowned crime authors in Russia and released the Storytel Original for audio first by Boris Akunin. So that's a great success also coming after having done other Storytel Originals in Russia. So that's something we continue to explore. Secondly, we have launched Harry Potter, both in Bulgaria and in the Netherlands. In the Netherlands, it's fun because it's a new recording and it's really bringing people to our service and also bringing something really great to the people in the Netherlands. And thirdly, we wanted to highlight a very special recording that we have done together in collaboration with The Prince Carl Philip & Princess Sofia Foundation on dyslexia. It's called Älskade dyslexi, beloved dyslexia, which was also launched in combination with Gothenburg Book Fair. Next slide, please. So other highlights during the quarter, we can also say that we have something we talked about in the Capital Markets Day about starting to make pilots or tests with different types of subscription models. So we have done 2 of those pilots. And we have launched one select version in India, and it's a selected version of our unlimited offer, which is targeting only the Maharashtri language group, which is the region around Mumbai. And this is a less expensive service, which then can actually reach out to people who doesn't need also the English more expensive content catalog in the service, and that's actually gaining really great momentum. And this is part of localizing our service, so it becomes even better and more suitable for each of the markets that we enter. And secondly, we have also launched another model, which is the Storytel Light in Finland just a couple of weeks ago, which is a limited version of our subscription model. You can get all the content, but you can only listen for 20 hours. And it's at a little less price. And this is for us to expand who can actually listen and hopefully, we can reach even more consumers that want to take the step into audio books and streaming, which we are very happy to have launched. And then we held a global conference this year, a virtual conference. Jonas, what you did you -- what can we say about that?

[Jonas Tellander, Founder, CEO & Director]

Yes. I mean, I think we agree, it was a huge success. We've made it a tradition to have conferences every year in early September where we gather all the storytellers around the world. And obviously, this was not possible this year. But instead, we went into famous studio [indiscernible] in Stockholm and ran six 45 minutes TV shows internally, so to speak, over these 3 days in early September. We had chat moderators and a lot of engagement from all the employees around the world and then other workshops. So watch that. I think, 3 really packed days. Of course, you cannot mimic the physical, socialness of actually meeting together, but I think we did a really good job. The outcome from it was a very positive rating from our 600 employees from this conference. So it was a good success. And I think the best way we could handle the corona situation.

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes. And being a very diverse and diversed company, this is obviously super important for us to make sure that we all know our targets and what we're aiming for and how we can continuously growing Storytel worldwide.

[Jonas Tellander, Founder, CEO & Director]

Good. So if we jump to the next slide, looking at the Q4, we're anticipating a subscriber growth over Q4 2019 of 32% and the revenue growth of 19% over Q4 in 2019.

[Jorgen Gullbrandson]

And worth to point out to you guys that read our reports. And the first one that we've done on this morning, we had slightly incorrect percentage number in that one. So the subscriber grew wherein [ 42 ] versus revenue growth of SEK 25 million that was not correct and is now corrected on the site and here. The numbers are correct, but the percentages slipped a bit. Thank you to all analytics out there that found it and notified us quickly. So moving over to our financial targets, which we have -- we have the same slide here for quite some now. And now we're coming to the end of 2020. And we have always said we're going to reach 1.5 million paying subscribers, and that will then be at December 31. So comparing that to our forecast number of 1.435 million as an average for the fourth quarter that we have in this report, we are still positive. But I think, as Jonas pointed out earlier today, we might miss it with a week or 2, which is what we usually have done. I mean some years, we've been a week or 2 ahead which we were last year on Christmas Day and some other years have been a bit late, but it's around the change in the year, where we reach our 1.5 million. I also said, we're going to grow our streaming revenues to SEK 1.9 billion. Originally, when we started the year, we actually said SEK 1.9 billion to SEK 2 billion. In this report, it says now we're going to reach SEK 1.8 billion -- SEK 1.78 billion or something, I think it is. It's some SEK 20 million short of that. Worth knowing them when we look at the numbers, if we would have used the same exchange rates that we had when we did this forecast in Q4 2019, we would have seen revenues coming in at above SEK 1.94 billion, so SEK 1.941 billion, which would have meant a growth of 35%. So if we allow ourselves to [ accuse ] the strong Swedish krona, we actually reached exactly the target we set up before the year started. So we're also saying we're going to have a full year negative EBITDA margin of minus 1% to minus 5%. We had a positive 1% this quarter in Q3, which is good because we were slightly sliding to the upper end of this range. So I'm happy that we are now within the range. So it looks positive for the year to reach this one as well. As we said, we're going to reach streaming profitability on a local level 2 to 4 markets. We have announced one this year with Netherlands. Let's hope we can add at least one more when this year ends. And we're going to launch in an 1 to 3 markets in the order we reported that we do for sure. Looking at our long year -- long-term forecast. We said we're going to grow some 40% on paying subs. As we stated before, this is the less important target. And of course, the revenue is below 35% CAGR is the more important. Worth pointing out that, I mean, this is an average for the period. We could be above some years, and we could be below some years. So we're not promising exactly 35% every year, but we think we're going to reach this on average for the planning period as you all know. We're going to continue to prioritize growth before profitability, worth mentioning when delivering a positive EBITDA this quarter, we're still going to focus on growing this company as much as we can. I'm going to monitor it to make sure that we have this continued good development in customer lifetime value versus SAC over the period. So as long as we do that, we're going to prioritize growth. And as we always say, we're going to reach streaming profitability on a local level within 5 years from launch, and that we still can deliver on and launching in another 20-plus markets over the planning 2021 to 2023. This all we'll do for sure, I think, during this period. The next page, we then open up for questions from the group. We have a few.

[Operator]

[Operator Instructions] Our first question comes from Joachim Gunell from DNB.

[Joachim Gunell, Junior Analyst]

Good day to Storytel team. So a couple of questions for me. Let's start with, I mean, in conjunction with your Q3 streaming update, I personally got the impression that your non-Nordic segment was growing at almost 100% in August and September since you commented earlier that July was basically flat. So now that we look into Q4, I mean, you forecast below 60%, non-Nordic subscriber growth. Is there something here that has perhaps changed in your mindset that you are becoming more cautious on growth, given there's almost 100% growth in August to September?

[Jorgen Gullbrandson]

I mean to begin with looking at percentages, it becomes harder and harder as we grow to grow with the high percentage numbers. But this year, understand, of course, we believe we still had a good growth in Q4. I think we grew some 65,000 subs in the period, which is comparable to the -- I think we grew 47,000 between Q3 and Q4 2019. So we're actually up there. Then, of course, we see a corona effect in many of these countries. I mean, it is difficult in many of the -- our developing countries around the world. We saw an initial very positive effect. But as we also said, when we do the top line guidance for Q3 we saw a big churn coming in these countries in July, specifically, as you mentioned. And I think they're struggling in many of these territories. So that's definitely affecting us in a negative way. But that said, we're growing with more people in an absolute number this year than we did last year in the same quarter.

[Joachim Gunell, Junior Analyst]

Thank you, Jorgen. And to follow-up on the non-Nordic business. It's very interesting to follow your progress in -- you commented Russia in the report, but also India to name just a few markets here. But can you just provide perhaps some sort of update on growth momentum, ambitions, et cetera, in India, now that -- I mean you have exclusive titles to begin to the Marathi speaking population?

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes. Thank you. I think our strive to make our service as local and with a local product market fit as possible is what we are doing. And sometimes, we are launching a country with a more broader decision, and then we start pruning, of course. So this is part of a natural cycle for us to prune our offer to the public. And I think one has to consider India being a country where we have a large [ display ] and difference between different income groups. And of course, having them service that costs, if you compare it to other streaming services, 2x or even 3x, it might be a difficult thing for somebody to test such a service. And hence, we want to ensure that we can work more with a local approach and this is what we've done with the Marathi language. We have targeted really Marathi speaking customers. And I think we are gaining some positive momentum. And when it comes to Russia, we can definitely see that one of the things we did in Russia also is something that when we did a new payment instruction for Russia with partnership with Yandex. We can also see that, that made a great momentum. So payments and, of course, languages are great ways to get to our local -- the customer groups. And one has to understand that India is made up of 20 different languages apart from English and Hindi is the administrative language, but many different languages across India are speaking different languages. And this is also something we have in our service, but we have now tested it with Marathi, and it's -- yes.

[Jorgen Gullbrandson]

It's very positive signs so far in terms of the -- how people start engaging and using the service and conversion from trial to pay on select Marathi is incredibly good. So I think we have really good hopes that, that will be a very big volume gain for us. But of course, obviously, the pricing there, about SEK 15 to SEK 20 per consumer month that's -- it will require a lot of volumes with -- to make a big impact on our growth rate.

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes.

[Jorgen Gullbrandson]

Yes. And I also want to point out that Marathi is actually the 10th biggest language in the world.

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes.

[Jorgen Gullbrandson]

So that's why we talk too much about it.

[Joachim Gunell, Junior Analyst]

Very interesting to monitor that going forward. And just finally from me. Coming back to you, Jorgen. I mean it's very impressive underlying profitability improvements that we're seeing here. And obviously, the business model is working with scale and loyal customers. But that being said, I mean, personally, the marketing spend is something that caught my attention here in the quarter. I mean, can you talk a bit just about why your country managers believe that it makes more sense to, say, prioritize, not perhaps relative to profitability, but lessen the marketing spend as where we are right now, what factors goes into that trade-off between chasing further growth and profitability where we stand now?

[Jorgen Gullbrandson]

Yes. Thank you, Joachim. Yes, I mean we have all along trained our country managers, have trained our country managers very well in making sure that when we spend marketing money, we make sure that we get them at an attractive acquisition cost -- subscription acquisition costs that we track intensely. And also comparing that to the customer lifetime value that we project for those customers as well. So we have good ratios between those. So when the country managers see that we are not performing according to those metrics, they've done [ customer ] marketing back home and restart the marketing effort with a new trial. This we saw partly in Q3, and hence, a good peek from your side, that you saw our marketing spend was somewhat lower than usual in the quarter. And this is also, of course, positive for our contribution margin, our EBITDA. So that's where it comes down to. So sometimes, you could think, of course, would be fun if they even spend some more to increase the top line, but it's good that they have the financial discipline to make sure that we grow in a profitable way. That's what's behind that.

[Joachim Gunell, Junior Analyst]

And it makes sense. But just to follow-up on that. I mean, if it comes down to the customer acquisition costs, which didn't look as favorable as you would have wanted to chase more top line, what drove that trend?

[Jonas Tellander, Founder, CEO & Director]

And I think that the acquisition cost as such for a new trial users is always want to improve that. But I think that's okay. And I think the challenge we're seeing and which we have good hopes will improve a lot is to get the activation and usage of the trial user to go up so that the conversion improves, and hence, the customer lifetime value improves, which makes the ratio to SAC more favorable. And this is why we see this new subscriptions to select Marathi in India. And I'm sure it will be followed by a lot of other select subscriptions to all the other 7 languages we have in India. And also the Light subscription in Finland, incredibly interesting because we can really track that the churn numbers do improve and the metrics looks more favorable. Now we have more of those, and they will then scale and be rolled out in more and more markets, and hopefully, we'll see that improving our CLV to SAC ratio more going forward.

[Ingrid Welinder Bojner, Chief Commercial Officer]

I also think there's a source of partly a corona effect, what we can see in the marketing efforts as well. We very early decided to continue to invest in marketing when corona hit the world in Q2, and we decided to be positive and stay optimistic because we feel that we have such a great service that would really, really benefit people. And then I think what happened in Q3 was that a lot of companies woke up and realized that they also wanted to invest in marketing. And hence, marketing eyeballs became more expensive and also became a bit crowded. So that's also how, of course, the CGMs on a local level work. So it's not so easy to aggregate all our 20-plus markets into one explanation. But I think this has been truly an effect as well.

[Operator]

Our next question comes from Eric -- Oscar Erixon from Carnegie.

[Oscar Erixon, Financial Analyst]

A couple of questions for me. First of all, outside of the Nordics, are you seeing any increased competition in recent -- this last quarter and into Q4, not this order but experimenting with an unlimited offering in several markets, for example, have you seen any initial impacts from that?

[Jonas Tellander, Founder, CEO & Director]

I think that there are more and more companies interesting to be part of the audiobook play around the world. I think that from our point of view, that's only positive as it looks right now because what we're in the face of doing is really for all these markets: Russia, Turkey, Poland, in the Poland, Netherlands, India. I mean, for all those Italy for all those, we have to build the market and build the awareness about audiobooks. And that's a big challenge. And I think having someone on our side that helps us build that is really, really helpful and much more important than the negative impact of having a competitor. I think that on the whole, that really helps us. That's what we see in Sweden, where we kept growing by 50,000 subs every year for the past 7 years, even after we've seen competition come in intensely. So yes, I think it's a good thing that we do see more actors coming in and us having a strong position on most of these markets is a good thing. But I think it -- what will really matter is what it will look like in 3, 4 or 5 years.

[Oscar Erixon, Financial Analyst]

Got it. And a quick comment on [indiscernible] experimenting with an unlimited offering in, for example, Spain, Italy, since earlier. Could you just elaborate on if you've seen any impact or sort of first signs from that?

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes. Thank you. Well, it's not the first market that [indiscernible] is really elaborating with this. We have lived side-by-side with [indiscernible] in the Italian market, where we -- where they also have a subscription model that is unlimited offer. I think it's more clear to -- well, maybe I'm biased, but it's more clear for the general consumer that understands an offer that is unlimited. So I think [indiscernible] has, of course, wanted to understand how that would work in market. And if they now -- they have launched it in also Spain, we are now then 2 strong players in that market. And back to what Jonas said, we can build the market together. And since we have the same kind of offering with an unlimited model, not a credit model that they typically have had historically, I think we can really educate the market on how such a service works.

[Oscar Erixon, Financial Analyst]

Got it. Very clear. And a question on the Nordics as well. You discussed the marketing dynamics a bit here, but could you also perhaps talk a bit about the Nordics. Are you seeing local competitors being very aggressive or that's too aggressive on customer acquisition? And if that's sort of the main explanation to your very solid contribution profit in Q3, which is typically quite marketing heavy?

[Jonas Tellander, Founder, CEO & Director]

I mean, we can see our marketing cost as a percentage of revenues going down slowly on the Nordic market. But the competition is incredibly serious I would say, it's very competitive markets. And we see that the penetration levels of audiobook streaming subscription services are approaching 8%, 9% as a percentage of the population above 18 years. So I think it's a competitive market. We have competitors with access to capital that do invest a lot. We have very strong market positions in Sweden, Denmark, Norway, Iceland, Finland, were second. But I think it's a fun game that plays out where the audiobook subscription services stand very strong and are able to grow also the overall book markets. Looking at the Swedish market, it's been growing now by 10% over 3 year period or 9% over a 3-year period, entirely driven by the streaming business subscription services, digital now being about 50% of the overall market. That's what we've seen in Sweden. We see similar trends in Denmark, Norway and Finland. So I think that gives us a good case also when we go out around the world and need to convince U.K., U.S.-based publishing houses that the streaming subscription model is a good one and has a positive net effect on the overall book market. I think that's something that is a big task for us, a big challenge and hopefully, we'll succeed and being able to demonstrate that. And therefore, making it easier for us to attract a really strong English-speaking content.

[Oscar Erixon, Financial Analyst]

Excellent. And final question from me. Storytel Light offering in Finland. Should this be seen as a pilot for other markets, I mean, in the Nordics to start? Or is this an isolated model specific to Finland? And why in that case?

[Ingrid Welinder Bojner, Chief Commercial Officer]

Thank you. Well, I guess, that -- the answer I will give you is really that we're piloting it. And I cannot say without having evaluated it, whether or not it will be a model that we will continue with in other markets. Every market is specific. And I think that's how we view the world, that we do a local approach in each country. So when we're testing something, obviously, we try to learn from it and see whether it would make sense in other markets. But it's really too early to tell whether we would use such a model in other markets for now.

[Operator]

[Operator Instructions] Our next question comes from Hjalmar Ahlberg from Kepler Cheuvreux.

[Hjalmar Ahlberg, Equity Research Analyst]

First, Jonas, just as a follow-up maybe on the Storytel Light. Is there any difference on profitability? I mean, I guess, ARPU is lower than this, but is any difference on how this impacts profitability? Or is it the same kind of profitability on this compared to the unlimited version?

[Jonas Tellander, Founder, CEO & Director]

Yes. It's Jonas here. It's a limited consumption in this only 20 hours max per month. So you would expect the average customer on that subscription-type to be on a lot lower average consumption. You may know that, for instance, on the Swedish market, we do have about 1/4 to [ just 1/5 ] to our customers consuming an average of 100 hours per month. So it's quite high consumption. So I'd expect that anything probably that the profitability would be just as good as at least as the other -- the unlimited subscription.

[Hjalmar Ahlberg, Equity Research Analyst]

Okay. And a question on new countries. I mean, you launched in Thailand in Asia and Belgium. And you have a lot of new countries that we don't know in the pipeline for the next years. How does the competition look in these new markets, I guess, is different than the old markets, but do you see, in general, more competition while you launching this? Or is it similar as you've seen in the last years when you launched in new markets?

[Ingrid Welinder Bojner, Chief Commercial Officer]

Yes. Thank you. Actually, what we see is, for example, in Thailand and going into Indonesia, we, as we have announced, doing that for Q2 next year. We're actually seeing more of a pioneer situation where we have to actually start already early on and producing a lot of books to audio. In some of these countries, the audiobook is not even specific phenomenon. So digitizing is the first step. And then secondly, of course, communicating our offer to the public. But we see a very positive effect from more and more publishers that we speak to in more parts of the world that are really eager to continue on the same road that we have shown and proven that we have done in other countries before. So it's a positive momentum, but many of the countries out there are still unexplored for us.

[Hjalmar Ahlberg, Equity Research Analyst]

Got it. And I mean, coming to acquisitions, you made quite a lot this quarter. And do you think this is -- I mean, new important part of the model when you expanded in new countries? Or was this quarter a bit unusual investments?

[Jorgen Gullbrandson]

It was an intense acquisition quarter for sure. I can tell you from the finance ultimately. And I think we have our eyes and ears open. We just hired an M&A manager to the company to look into those opportunities. And as you know, we have gunpowder, i.e., cash, SEK 580 million in cash and a credit facility of an additional SEK 0.5 billion. So definitely looking at possibilities to acquire in other countries going forward. Any specifics, as you understand, I cannot give you.

[Hjalmar Ahlberg, Equity Research Analyst]

And maybe my last question on the growth -- long-term growth through 2023, you have a 35% revenue annual -- average annual growth. Can you give any -- I mean, do you think this can be tilted towards the end of this period? Or we aim to have a, I mean, smooth growth over the next 2 or 3 years? Or is that very difficult to say?

[Jonas Tellander, Founder, CEO & Director]

Yes. I think we can't comment on that right now.

[Operator]

There appears to be no further questions. So I'll hand back to the speakers for any other remarks.

[Jonas Tellander, Founder, CEO & Director]

Well, thank you very much for listening in. I think that's it for now, but I'm sure that you'll hear from us on other instances throughout the coming couple of months. So thank you for now.

[Jorgen Gullbrandson]

Thank you.