Scout's Cost-Cutting Pays Off as Q3 Shows Improved Bottom Line
Date: 2023-11-19 Author: Dima Zakharov Categories: EVENTS
B2B Growth, B2C Decline in Q3:
In the third quarter, Scout experienced a 4.6% dip in overall revenue, reaching SEK6.3m. While B2B operations saw a robust 15.9% growth, B2C revenue declined by 47.4%, attributed to discontinuation of unprofitable marketing campaigns. Management remains optimistic about B2C's potential for controlled profitable growth.
Costs Decrease, Net Loss Narrows:
Scout's comprehensive cost-cutting plan resulted in a 27.8% reduction in operating expenses, mainly due to a substantial decrease in staff costs. The pre-tax loss improved to SEK5.8m, a positive shift from SEK14.3m last year. Adjusted EBITDA also showed improvement.
Brighter Year-to-Date Figures:
Year-to-date results indicate a 26.7% increase in revenue to SEK22.3m, driven by significant growth in B2B revenue, which more than doubled. However, B2C revenue declined by 48.4%. Operating costs decreased by 23.6%, leading to a pre-tax loss improvement.
CEO's Perspective and Appreciation:
CEO Niklas Jönsson expressed confidence in the organization's choices and highlighted the positive progress. He thanked partners, shareholders, and employees for their support in making Scout profitable.
Scout's Cost-Saving Journey:
The cost-saving journey began over 18 months ago under former CEO Andreas Ternström, who initiated a comprehensive cost review due to slow growth and rising expenses. The restructuring continued under CEO Jönsson, including significant workforce reductions and the closure of partnerships.
