CLX Communications was founded in Stockholm, Sweden around the summer of 2008. The vision was to create an enterprise messaging company with state of the art technology at the heart of the business. Since then we have grown into a world leading Cloud Communications business, consistently outperforming the growth of our market and our competitors.
Words from our CEO – Oscar Werner
A World of Opportunity
We continue to see high demand in Q3. More and more enterprises use mobile technology to increase customer engagement and improve operational efficiency. The mobile channel has 100 percent consumer penetration, a 98 percent open rate, and world-wide reach in seconds or less.
Group organic revenues, in local currencies and excluding acquisitions, grew 13 percent in Q3 2018 compared to the same period last year. Organic development and contribution from acquired businesses saw gross profit rise 26 percent and adjusted EBITDA is 33 percent higher. We continue to grow our traffic through leading global cloud software platforms and see a positive impact from our targeted efforts towards US based tech companies.
Our cloud communication platform now handles some 25 billion transactions per year, which means we send more than 65 million business-critical enterprise messages each day. We are launching real-time voice and video services in further markets and see strong interest in our next generation enterprise messaging portfolio. Our personalized video messaging products are seeing higher uptake with strong momentum in the US and trials are about to start in selected European markets. This quarter, we are also seeing improved profitability in our Operator Division, which sells software to mobile operators.
We see opportunities to drive further growth both organically and through acquisitions. Our messaging platform is built for scale and our previous acquisitions have proved successful. To support our M&A strategy, we have decided to modify our leverage policy to allow for net debt of 2.5 times EBITDA, and to evaluate different options for future debt financing. We have a disciplined approach to M&A and will target companies that grow our scale and profitability, enable faster access to new markets, or add complementary technology.
We also see room to drive further organic growth through targeted sales initiatives and new product offerings. Our market is growing as more businesses digitalize their customer journey and draw on our products to drive customer engagement. The emergence of new, rich messaging formats enables easier two-way interaction and positions enterprise messaging as a viable, pre-installed alternative to apps. To capitalize on these opportunities, we will step up investments in rich media messaging, RCS, real-time voice and personalized video. These investments may impact our earnings in the coming year before new initiatives translate into higher revenues and gross profit. However, our overall financial target, to grow adjusted EBITDA per share by 20 percent per year through organic efforts and M&A, remains unchanged.
CLX Communications has great employees with high focus on customer satisfaction and we have been trusted to help some of the world's most demanding companies to interact with their customers. It is an honor to lead the company and I look forward to the future with excitement!
President and CEO
Stockholm, 6 November 2018
CLX Communications provides cloud communication technology, services and solutions to enterprises, society and mobile operators, supporting them to address and find solutions to all aspects of communication challenges today and for the future.
Cost leadership and Differentiation Strategy is at the core of CLX business principles and it defines us, who we are and how we operate.
Our Cost Leadership ambitions are to focus on achieving:
- Lowest customer acquisition cost by blending online, inside and field sales in an optimal manner.
- Lowest Cost of Goods Sold (COGs) by procuring directly from the source.
- Lowest number of customer care touches and lowest number of support tickets by focusing on the highest quality products.
- Lowest Cost of Ownership of our core platform by leveraging our Operator division technology capability and generating profit from R&D investments in our core platform.
Our aspiration to differentiate ourselves are focused in the following areas:
- Be the best in class Tier 1 Super Network with more Tier 1 connections to more places than anyone else.
- Provide our customers with world-leading technology (insert comma) excellent products, services and a personalized support with second-to-none quality ambitions.
- Maintain a healthy and challenging environment for our employees.
Our vision is to be the world's leading Cloud Communications and IOT company, addressing and fulfilling all aspects of communication needs, empowering and supporting global enterprises, organizations and mobile operators to achieve their objectives to the benefit of society, employees, customers and shareholders.
Connecting People and Things to a World of Infinite Possibilities.
Provide our customers with world-leading technology excellent products, services and a personalized support with second-to-none quality ambitions.
Maintain a healthy and challenging environment for our employees
The CLX financial targets are:
- Growth in adjusted EBITDA per share shall be 20 percent per year, starting with the calendar year 2016.
- CLX target is that net debt over time shall be below two times adjusted EBITDA (measured on rolling twelve months).
- Dividend policy - the Board continues to see good growth opportunities through acquisitions over the next few years, and therefore proposes that the company's earnings primarily are reinvested.
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