Thank you.

Thank you.

Thank you. I'm here today as usual with our CFO Carl, and he will join us later on in the call.

First up, CDON Group operates two different marketplaces: Fyndiq, focused on discount shopping and with a topping of TikTok trending products; CDON is focused on quality products and mainly on consumer electronics. We have roughly 100 million annual visits, and we offer about 30 million products for sale.

We operate an asset-light and scalable business model, and we have a big potential when it comes to the marketplace penetration. Where this is a very common way of shopping online for the rest of the world, it's only 10% that does that in the Nordics.

With this, we have our mission, which is to unleash the power in the marketplace and give the best shopping experience in the Nordics. With that said, we can sum up a growth year and increased profit.

We have a solid full-year GMV growth despite a very weak start of the year, with a strong ending. We had 15% growth in GMV in Q4 and a full-year growth of 9%.

On top of that, we have strong profitability, where we have a full-year EBITDA growth of 26 million SEK up to 31 million SEK in total. We have our growth initiatives that have started according to plan, and we will come back and describe them further on later on in the call.

Looking at the numbers, we have the plus 15% for Q4 and a gross profit after marketing that grew a little bit less, with 9%. This is due to the increased marketing cost that we still see are affecting us.

We have an increased EBITDA profit with an increase of 8 million to 18 million SEK for the fourth quarter. Full year, we have the 6% growth in GMV and 4% of GPAM, also affected the same way of the marketing cost.

Really happy to see this strong improvement of our EBITDA profit. We improve it with 26 million to 31 million SEK for the full year, and that's something that we are really proud of.

Now looking at the full year, we can see the horrible start of the year, January and February, and after that how we really picked up the pace. Ending up with double-digit growth for every month in the Q4 and ending with a very strong momentum.

I'm not going to talk more about numbers here, but I will come back and describe more about our growth initiatives. Before that, let's dig into the numbers with Carl.

Thank you. As always, let's start on the highest level before jumping into the segments.

As said, a strong end to a positive year, and the 15% growth rate in Q4 is something that we are very happy about. 6% on the full year, recovering from the weak start, is also positive and shows that we are on the right track.

Net sales grew by 10% and 2% full year as 3P business continues to grow as share of total business. GPAM up by 9% in the quarter and 4% full year, following that higher marketing cost, and let's come back to that point a little bit later.

Very happy about EBITDA, amounting to 18 million in the quarter and 31 for the full year, significant turnaround from the low 5 million in 2024. It also proves the scalability of our business model and that we are able to generate significant EBITDA growth from this top-line growth.

Looking into our two segments and starting with GMV, we saw strong growth across both of them, but the CDON segment really stood out as the most positive one. The group were able to sustain its positive growth momentum that we picked up in Q2 and Q3, and in Q4 we even exceeded the high benchmark from Q4 of 2023.

Very happy about that. Momentum increased particularly in the CDON segment.

Growing by 20% is very impressive, and it was driven largely by good performance in home electronics. It seems like Santa was listening to us and bringing a few air fryers and PlayStations to each and every one of you.

Full year we grew 5% as we were down so much in the beginning of the year. It was another solid quarter for Fyndiq, in particular in the markets outside of Sweden, where we grew by 6% in the quarter and slightly above that at 7% in the full-year period.

Our take rate remains stable compared to recent quarters, and also looking at the group level, still hovering around 19%. The CDON segment saw a slight dip to 14.6 compared to last year, but very much in line with recent quarters.

We do see a small negative category mix effect, which is natural on our marketplace with different seasons and different trending products, but it was also offset by the recently introduced merchant performance fees on CDON. We're still able to maintain a solid and flattish take rate on CDON.

For Fyndiq, just below 30% in the quarter, and in line with the yearly average, just below 30%. GPAM grew for the group and respective segments, but we saw some pressure on the GPAM margin from the increasing marketing costs.

As we remember, CDON segment grew by 20% GMV, but only 5% GPAM. We are seeing higher marketing cost and that dependency on the paid channels.

The GPAM margin decreased to 7.3% in the quarter and 7.6% full year, down from just over 8% in those two periods last year. However, in Fyndiq we saw a margin expansion, where GPAM increased by 14% compared to 6%, and our margin increased to 17.2 for the quarter and 18.1 for the full year.

Very happy about that, and have been able to defend that throughout the year despite the higher marketing costs. As we see, with that higher take rate, we are able to manage and work with the higher marketing costs we do have in Fyndiq.

We do remain too dependent on paid traffic, and it did increase in both segments. In the CDON segment, we did exceed the previous high mark of 6.9 in Q4 of '24 after number of quarters where we were actually below that number.

For Fyndiq, we saw a smaller increase to 12.7% of marketing costs as percentage of GMV. We do expect marketing costs to increase further in the coming year as we activate the brand-building activities.

This we are doing because we believe in the long-term positive effects from it. With the improved branding activities, or the branding activities in general, we are looking to improve our organic traffic, and that in turn will help reduce the marketing cost over time.

This is a powerful and important activity that we will talk more about shortly. As said, the significantly improved EBITDA, and we were exceeding 2023 levels for the group, 18 million in the quarter, no adjustments this time around compared to last year when we were still closing the Malmö office.

We do remain on a positive growth trajectory looking at the rolling 12 and in this case also the full-year number of 31 million. We'll talk shortly about opex, and it is continuing to trend lower year-over-year, also when comparing this quarter with the adjusted opex of Q4 last year.

We saw a smaller seasonal uptake, which is expected with the peak traffic volume in Q4, but lower cost of consultants and stable software cost following the important platform migration are contributing to the lower opex compared to previous year and years. Despite full-year opex of around 173 million, and it is slightly above our post-integration ambition, the run rate in Q4, with some consideration for that seasonality, is in line with our ambition, and we are okay with that.

Lastly, a few words on cash. We did see improved cash flow before changes in working capital in the quarter as well as the full year.

Very happy about that. We saw a lower build-up in merchant debt during the quarter and even a reduction in full year, and this led to slightly higher working capital.

The share issue, completed in Q3 and Q4, did of course contribute to an improved cash position and an improved current ratio. The cash balance of 150 million at period end is very stable, and we're in a good position to execute on the initiatives that we're now planning for.

Yes. Now we're going to talk about these growth initiatives.

We have three points we would like to talk about. Number one is to go a little bit more in depth in each of the initiatives.

Number two is to talk about our financial ambitions with these initiatives. Lastly, also talk about where do we see how to track the progress of these initiatives, which are the main KPIs for this.

Starting with an overview of the four growth initiatives. Number one, retail media, to really monetize all of our visitors through high-margin advertising on the site.

Number two is Nordic growth opportunities, to really accelerate and double down on our Nordic ambitions. Number three, as Carl mentioned before, brand marketing, to really invest in this long-term brand building and creating a deeper connection with the brand and the customers.

Last but not least, the tech resource boost, to really expand the capacity and increase the velocity of the tech initiatives that we're doing in-house. Talking a little bit more on each of the initiatives, and let's start with retail media.

Retail media is pretty much the worst-kept secret in the marketplace industry. Pretty much everybody does it, and we have numerous of white papers on how to do it and what to expect.

To explain it a little bit further, we have two customer groups utilizing retail media. One is our merchants, and we now will enable them to push and front their products at their need, to say, ad site, in listings, and so on.

This is a very normal way of working when it comes to marketplaces, and we haven't been there yet. We have been trying on CDON previously, but never on Fyndiq, and now we are doing this really full on.

The second customer group that will utilize this is external advertisers. Let's say, for instance, a TV brand, rather than just putting generic ads on, let's say, a newspaper site, putting it on our site, in the TV category, and pushing their TV to customers that we know for sure are close to buying a TV.

Here we can utilize our first-party data to really create a high-efficiency advertising and also improving the customer experience also, to be sure to showcase the right product for the right customer at the right time. This is a high-margin and quite scalable business area that we really look forward to.

This will also be done through a third-party software that we are integrating with as we speak. The second part, Nordic growth opportunities.

We have been live for many years in the Nordics, both for Fyndiq and CDON. To be honest, the last two or three years we have put all our focus on Sweden, our biggest market for both segments, more than actually the Nordic countries deserves.

Now we really need to put some focus in that direction and reallocate some resources in that directions. We have the recipe.

We know for sure what really makes a difference both for the customer experience, but also to increase sales. This is increase supply, to really get more of the products that people want at competitive prices.

This is now being done with onboarding merchants that today only sell at Sweden, but have the capacity to sell to the other countries. We're also talking about onboarding merchants that only sell to one of the Nordic countries, but not the rest.

We're also talking about integrating with Nordic aggregators that will open up a big mass of local merchants. It's a lot about supply and merchant, and make sure that they get onboarded to the rest of the countries.

Besides that, we're talking about improved customer experience as well: better translations, better SEO, and also localized campaigning. Last but not least, merchandising, to make sure that we have the right products that the local market wants, and make sure that those prices are competitive at each and every market.

It sounds basic, but given the last couple of years, our main focus has really been on Sweden, and now we will be able to expand it into the Nordics. The third one is brand marketing, as Carl touched upon before also.

To be honest, we have been talking about this for a couple of years now, but we haven't been ready for this. We haven't been mature enough, and we have felt that we cannot really have the confidence and say put this money on brand marketing and ask people to visit our site, because the supply hasn't really been at a basic level and the customer experience hasn't been good enough, to be honest, neither.

Now we are at a level where we feel that we can now go out and reintroduce both the segments into the Nordic market. There are two different challenges when it comes to Fyndiq and CDON.

Starting with Fyndiq, has a much more clear value proposition and brand position, being this discount shopping and also meeting up the TikTok trending products and so on. Here we're talking a lot about reminding the customer that Fyndiq still exists, and just poking the customer about choosing Fyndiq the next time they are considering shopping.

When it comes to CDON, we need to do a brand position transformation as well. We have been around since 1999.

It's well connected with CDs, which we don't sell so much of today. A lot of consumers have high awareness of CDON, but have low connection to the brand.

This is what we need to change now. We need to create a strong connection to the brand CDON, and also clarity why you should come to CDON and shop instead of going somewhere else.

This is something that we're working on as we speak. Another thing is also that we have this gated approach to this.

When I did my first TV commercial 15 years ago, it was pretty much all in on red. Then you could see a couple of weeks after it was run on TV how the performance was.

Today you have so much more possibilities to do these incremental testing, especially through YouTube, but also social media, and to be able to see and A/B test which content and which message should be to which target audience, and to test this with small investments. This is the way we will go and approaching this now.

It's no all-in brand marketing and hope for the best. It's a very gated approach, and we have clear KPIs and targets that needs to be met, and the board of directors need to approve these as well.

The outcome is really to create a much more deeper connection with our brand and higher awareness, but also to create a much more sustainable marketing mix. Today we are too dependent on lower-funnel paid marketing, and that we hope to change with this now.

Last but not least is the tech resource boost, to really now be able to increase the velocity, but also be able to move over into innovation boosted by AI. This is a little bit harder to be specific around, but I will give you an example.

We have today a quite basic internal search. This is standard of e-commerce industry, anno 2023 maybe, which is okay.

We will now change this into an AI-based search, really going into next level how you can use search. In our original plan, we would be able to release this in October this year.

With this resource boost now, we will be able to launch that in Q2. This is just one of many initiatives that has this potential that we now can really push and do rather sooner than later, and get the benefits of it 4 to 6 months ahead.

That we believe strongly will affect us in a very positive way. We also have a kind of semi-gated approach here, since a big chunk of this resource boost is through consultants.

If things doesn't pan out as expected, we have some flexibility to act quite fast on this cost as well. Yes, and now we're going to talk a little bit about our financial ambitions with this as well.

Yes. What does this mean?

It means a front-loaded investment year in '26 that will weigh on the near-term profitability, but put us in a position to approach 100 million of EBITDA in 2027. So '26 is designated investment year.

It will also be slightly front-loaded, also in considering the net effect from the initiatives, where the cost will impact our profitability. We are sure that we are building long-term valuable capabilities.

Product development, release of new features, implementation of retail media, it takes time. We believe in the long-term value of this, and that's why it makes business sense to go this way.

During '26, we will report quarterly on the actual initiatives spend. This will be incremental to the normal operating cost, and we do this to be as transparent as possible during this investment period.

We don't have a '26 EBITDA target, nor an external spend target to communicate, but by providing updates on how much we have spent, we aim to be as transparent as possible. In '27, we remain committed to the 50 million of incremental annual EBITDA from the growth initiatives.

We spoke about this in September, and we remain committed to it now. Compounding both the growth initiatives as well as the underlying business that we expect to grow, we therefore aim to achieve 100 million of EBITDA in 2027.

As we spoke about in this presentation as well, we have previously always talked about three main KPIs to evaluate our business: it's GMV, GPAM, and EBITDA. However, during this transitional investment period or whatever you want to call it, we need to add a separate lens to evaluate at least the core business.

We believe that GMV will continue to serve as the prime indicator if our marketplace engine is revving, creating and also converting demand. The take rate will show that we do that at a profitable level.

While GPAM and EBITDA will be impacted adversely by the initiatives, GPAM, as we spoke about, with the marketing costs, and EBITDA carrying both that and also the incremental operational expenses related to the other initiatives. Looking at the former three KPIs would not tell the full story, and that's why we hope to be as transparent as possible also with the cost side of things.

Not only the costs, but we will also report on a consistent set of proxy KPIs to disclose and really evidence that we are progressing according to plan with these initiatives. We could also sprinkle in a few additional data points along the way, but I think with the cost focus as well as these leading KPIs that we are doing the right thing, we really aim to be as transparent as possible and allow an opportunity to frame your own analysis around the core business itself.

Let's sum this up.

Yes. A year of growth and increased profit, happy to be able to report plus 15% in Q4 and 9% for the full year, and especially the increased profitability, which we increase with 26 million SEK to 31 million SEK in total.

We are now running on the growth initiatives, and we will continue to report on the updates.

Who should start? I can start.

Fyndiq was quite solid, not the super growth. CDON was clearly stronger in this.

I think now when some peers have reported, we can see that it has been both sides of positive and negative Q4. Obviously, we have been on the positive side.

I think this is when we were here 1 year ago, we were talking about our focus on consumer electronics and to really get more merchants with that type of products. I think now, fast-forward 12 months, this is the fruit of those investments and focus.

We now have really a supply that people want at competitive prices. This is not just a one-off campaign that we have created for this Q4.

This is a baseline that we are now increasing, and we will continue from that increased baseline.

Yeah. No, we had I would say 2 years ago and maybe 2 years before that, we had strong PlayStation 5 growth in the consumer electronics.

We have had some tailwind in that comparatives for that category. Despite that, we have grown, and we have grown especially when it comes to classic consumer electronics: TVs, mobile phones, and earphones.

I must say I'm quite impressed with what we have achieved there, given the comparators we have, the extreme low-level margins we have in that, and still being able to increase sales and also doing that with profit.

Yeah.

I think when we meet back here in a couple of weeks or months and talk about Q1, we wish to present a very consistent set of KPIs in addition to the costs, where we will show you, for example, how much incremental revenue we are driving from certain initiatives. That is rather clear in the case of retail media, given that it's fully incremental.

It might be a less straightforward when you start to evaluate the incremental GMV from, say, brand marketing. We'll come back with a set of KPIs that we will stick to during this period, and also of course laying a qualitative overlay, telling what we have done and what we have achieved.

We believe that retail media is one of those cases that we could execute on rather early. The technical complexity is lower than in some other cases.

We are hopeful that we can execute upon this sooner rather than later.

Some of the initiatives is also something that you don't want to come in too late into the fourth quarter of the year, because then we are a bit reluctant to start new things. Retail media is something that we really want to before we go for summer holidays to have that in place.

Definitely. We haven't had time to focus on this in the way we should be doing as a marketplace in 2026 in particular.

Looking at peers and looking at the benchmarks about how much revenue we could achieve, the potential is significant. Of course, we need to be somewhat sort of conservative and responsible in our estimates around it.

We have done a thorough sourcing process on the partner that we're doing this together with, and we have selected a leading global partner who has wide experience also working with marketplaces around this that we're excited to drive revenue together with.

I think also adding to that is we have also some macro effects in the Nordics now that goes in our favor. When it comes to the merchant side of it, this is something, as you say, other marketplaces are doing it, and we can see how Amazon and Bol and so on are utilizing that.

The other part, when it comes to the real retail media, external advertisers utilizing your inventory, that is quite new in the Nordic market, and that has grown a lot just the last couple of years. Just around the corner in 2 weeks, we have the biggest e-commerce conference, D-Congress.

There's several of the talking points and at the stage talking about retail media. Never seen this before.

Now if you're looking at, for instance, I know Apotea is doing a lot of retail media within those pharmaceutical area that they are working in. We have also that macro trend going in our positive direction.

It's a very good question, and I wish I had a better answer to it. We don't have a public or an external target around how much we're going to spend.

We did raise capital in connection with executing upon these initiatives, but we don't have neither an external spend target for '26 nor an EBITDA target for '26. There are a number of uncertainties to it, and as you spoke about, Fredrik, this is a gated approach in several of the initiatives.

If we don't pass that gate, obviously cost would materialize rather differently. At this point it's still too early to tell, and I think it's then our responsibility to rather tell what has happened, to provide as much transparency as possible, and to really focus on that long-term target that we are now setting out for 2027.

I think '26 is going to be early to see things happening. This takes time to both rebuild and gain sort of the trust through the consumer and to really get this message home.

We believe that, as we said, we're going to see continued increasing marketing costs, but over time marketing cost will come down when organic traffic comes up again.

The total, share of obviously it's going to go up. We're going to now introduce less efficient marketing than we have today, so that's going to increase, but quite soon enough, the underlying base marketing, to say, the performance marketing, is going to go down, but in total, it's going to increase for some time ahead of us.

Yeah. We felt it.

We felt it was positive, but now looking at our peers and so on, it's extremely volatile in the reports now, to be honest. We have a couple of reports just the other day that's in the same segment as CDON who had not this growth at all, and it's really hard to say how the total sentiment looks like.

For us, it was very positive.

I think at least we're doing a lot of things right. We're definitely, I believe, growing faster than the market and in those categories, looking at total e-commerce, up by some 10% according to to PostNord just this morning, right?

Our growth was strong, no argue about it. At the same time, we should also be a little bit humble about Q4 of last year, of 2 years ago, sorry, in 2024, which was rather weak and a disappointing Q4.

Of course, if we if we discount the performance a little bit with that, I would still say it's very strong and positive, but we got a little bit of an extra boost from it.

As I point out in the CEO letter, that's one of the disappointing aspects with Q4, to be honest. We didn't really finalize and get this extra push from these giants that we were expecting and hoping for.

Things takes longer with bigger companies, and now this is a new segment of merchants that we don't have really this experience from, and now we are hitting some, I would say, internal politics and such, and also, yeah, legal approaches and so on. It takes a little bit longer.

We still are confident that this is the right strategic way for us, and that it will have a very positive impact on our business for CDON, but it was pretty much zero impact, or close to zero impact, in Q4. We are onboarding them now as we speak, continue, and they are selling as we speak, we are hoping and seeing that they will get the positive effect now.

It's been both. I would say for a couple of the biggest one has been more administrative issues.

They are usually have quite good internal tech capacity to do the integration, it's much more up to getting in line for the prioritization. Now actually, we had some bumps in the road, which were more of an administrative characters.

Many of them are very experienced working with other marketplaces. There seems to be a standard on how to approach this, and by solving towards that, I think we're well positioned sort of for the coming batch of larger merchants, and that should go smoother than it did sort of the first time around.

No, really looking forward to this year and for our growth initiatives, and looking forward to stand here in 3 months again. Great.

Thank you.

Thank you.