During the second quarter the number of subscribers continued to grow to a total of 852k, an increase of 14.5%. Net revenues increased by 12.5%, corresponding to 20.3% adjusted currency. Growth was driven by high renewal rates, effective investment in marketing and new growth initiatives such as B2B sales and partnership programs. Increased spend on marketing, a growing organization and the stock exchange listing contributed to a planned increase in costs and therefore a decline in net income for this quarter.
Commenting on the quarter, CEO Carl Johan Hederoth says:
"Growth in subscriptions and sales continued during the quarter through effective marketing and continued high rates of subscription renewals. Satisfying to note that the new growth initiatives launched in the spring also contributed to the growth, which confirms our strategy and long-term investments. Our operating income was weighed down, as expected, by costs linked to the stock exchange listing and to investments in marketing and a larger organization."
"The most important event of the period was the listing of Sleep Cycle on Nasdaq Stockholm on 8 June. The interest in the offering was high from both retail and professional investors. The attention from the stock exchange listing has also contributed to an increased inflow of business opportunities and a greater awareness of the company. With a stable cash position, a strong brand and success in our growth initiatives, Sleep Cycle is well positioned to achieve our long-term goals.
This information is such information that Sleep Cycle AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the agency of the contact person below, for publication on August 13, 2021 at 08:30 CET.
The full interim report is available on www.sleepcycle.com For more information please contact:
Carl Johan Hederoth
CFO and Head of Investor Relations
+46 70 939 5327
Head of PR
+46 73 972 6424
About Sleep Cycle
With millions of daily active users and over two billion nights analyzed in more than 150 countries, Sleep Cycle is the leading sleep tracking application and one of the most widely used solutions worldwide to improve sleep health. Sleep Cycle's mission is to improve global health by empowering people to sleep better. Since its launch in 2009, Sleep Cycle has helped millions of people understand their sleep habits and improve their sleep. The mobile application helps users fall asleep more easily, tracks and analyses sleep during the night, wakes the user in a light sleep phase and provides insight into how sleep quality is best improved. Sleep Cycle is one of the world's most comprehensive sources for statistics on sleep and contributes to research and reporting on sleep worldwide. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP. The head office is located in Gothenburg, Sweden and the company has 37 employees.