Twiik CEO Anders Gran comments on the annual report for 2022

We have left another unusual year behind us. The pandemic that marked the fitness industry and accelerated digitization is over. It has been replaced by new challenges, but at the same time also new opportunities for the industry's players.

We have a lot to be proud of as we leave 2022. The rollout of an enterprise solution for Friskis & Svettis Riks meant further proof of our ability to deliver large solutions with high efficiency and quality.

Commercially, this is an important milestone, but our enterprise launches are also starting points. For us, new launches mean the start of a journey where we develop and expand the business together with the customer. During the year, we have developed several important updates together with our customers. We, therefore, see continued growth for our SaaS and subscription business where our annual recurring revenue (ARR) at the end of the year was 113% higher than at the end of the previous year.

If you look at the technical platform, major changes have taken place during the year and several tone-setting projects have been started. I'm especially looking forward to our upcoming update to the part of the service that gyms and coaches use every day. On the one hand, we are carrying out a major update of the web-based tool, and on the other hand, we are launching a dedicated app for coaches. The coach app enables coaches to follow and coach their clients directly on their mobile device - whether they are online clients or members the coach meet physically at the gym. The app was released in beta version in late 2022 to gather feedback. The next version is planned to be released in the second quarter of 2023. Later in the same quarter, we estimate that the first parts of the new web interface will go live.

2022 has in many ways also been a challenging year. The climate in the financial market has become tougher. Rising inflation and energy costs are putting pressure on consumers, coaches and gyms, something that we will probably see the effects of in 2023. The new situation has forced new priorities for our customers, but also for us.

For the gyms, an unstable environment means an increased focus on cost efficiency, while competing for members who return to the gyms. Differentiation in the service offer will be key for the gym of the future. The combination of increased demands on cost efficiency and high demands on differentiation, suggests that the next 18-24 months will continue to be interesting in the gym market. Not least from a digitization perspective.

The pandemic hastened digitization and today's consumer mixes physical presence at the gym with training at home and instructions on mobile devices. What we today call hybrid training has become the new normal, which creates good conditions for Twiik and our technology platform, which was developed with this in mind.

For our part, the global situation means that we have accelerated our transition towards positive cash flow, something we still want to balance with platform development and growth. The market we operate in is changing, and market shares are important for the future.

As part of the transition, we have reviewed our product portfolio and see an opportunity to increase focus on the products and services with the highest margins.

In addition to our SaaS solution, we today have in-house developed products such as the corporate challenge TeamBoost, which we partly sell directly to companies, partly through gyms and corporate health. The in-house developed products are a profitable and scalable business. During the end of 2022, we have increased investments in the development of our own training products both directly to consumers and for coaches and gyms to offer their customers. An area with good potential where we have built a broad knowledge within the company.

We have also in early 2023 expanded the team with a new Business Developer for our B2B products, an important step and something that is expected to help us capture the opportunity that lies ahead.

I am happy and grateful for our customers and partners who give our work meaning. I also want to thank our shareholders who continue to show that they believe in Twiik and our mission and support us on our exciting journey. Above all, I want to thank my fantastic colleagues at Twiik. Together we shape the future and give more people the opportunity to live healthier lives.

Onwards-upwards,

Anders Gran, CEO

Read the full annual report here (in Swedish)