Precio Fishbone AB (publ) Interim Report January – March 2025
During the first quarter, we continued to face a challenging market, but the situation for our consulting services within Digital Journey has gradually improved over the quarter.
Unfortunately, the development for NGO Online has moved in the opposite direction. As the funding previously provided to this sector through USAID has been almost entirely cut, uncertainty is high. Many NGOs have been forced to scale back their operations and postpone investments.
Digital Journey
During the quarter, we observed a slight increase in market activity. Business won—primarily from existing customers but also from new ones—has enabled us to begin expanding our consulting teams in Stockholm and Gothenburg through new recruitments, and we see a continued need to grow further during Q2. For our local offices in other parts of Sweden, the market has not shown the same level of improvement, but conditions have stabilised. We have decided to consolidate our operations in the Mälardalen region to Örebro and Eskilstuna, which means we will close the Västerås office during Q2.
Our extensive experience and deep technical expertise in web development on the Optimizely and Umbraco platforms give us a strong position in the market. During the quarter, we launched several initiatives in this area to strengthen and broaden our delivery. Some effects will become visible in Q2, but the major impact will be from Q3 onwards.
We continue to market the Microsoft 365 and Microsoft Copilot concepts introduced in Q4 2024. To increase volume and market presence, we have entered partnerships with selected providers of licenses and Azure resources, creating a strong end-to-end offering that customers appreciate.
The packaged solution for delay compensation, EVF, which we have implemented for several rail operators, is currently undergoing a technical upgrade to enable delivery as a SaaS service via Azure. This is a cost-effective and secure way of accessing the service, and we expect additional users during the year.
Kaskelot/Valghalla
We are now approaching the milestone of a total of 100 municipalities using Kaskelot and Valghalla. The municipal elections in Denmark in November have driven strong demand in Q1, as municipalities want to be fully operational well in advance of the election.
NGO Online
The positive development we saw for NGO Online in Q3 and Q4 has unfortunately come to a complete halt. The dismantling and suspension of payments from USAID—previously the single largest donor globally—has created substantial uncertainty and immediate funding challenges for many NGOs, including several of our customers. Many have postponed or reduced their purchases. Compared with Q1 2024, revenue is nearly SEK 1.5 million lower.
Since the future of USAID funding remains unclear, we are focusing our sales efforts on NGOs that are not primarily dependent on USAID. One benefit of implementing NGO Online is the reduction in administrative costs. From a longer-term perspective, investing in NGO Online has a positive effect on the NGO’s ability to fund its aid efforts. We therefore offer financing options with lower initial investments. We are closely monitoring developments to adjust our business model accordingly.
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