Sleep Cycle AB (publ)
STO:SLEEP
Sleep Cycle AB (publ)
Sleep Cycle AB develops sleep tracking applications and tools for analysing sleeping habits. The company is headquartered in Goeteborg, Vastra Gotalands. The company went IPO on 2021-06-08. The firm offers sleep tracking application and solutions to improve sleep health. The mobile application and sleep solutions help users fall asleep more easily, measure sleep habits, track and analyze sleep during the night, wake the user in a light sleep phase, and provide insight into how sleep quality is improved. Sleep Cycle is used as one of the sources for statistics on sleep and contributes with its sleep database to improvement of sleep habits, increased sleep awareness, research and reporting on sleep worldwide. The Sleep Cycle group consists of the parent company and its wholly-owned subsidiary Sleep Cycle Sverige AB. The business is essentially conducted via the parent company.
Sleep Cycle AB develops sleep tracking applications and tools for analysing sleeping habits. The company is headquartered in Goeteborg, Vastra Gotalands. The company went IPO on 2021-06-08. The firm offers sleep tracking application and solutions to improve sleep health. The mobile application and sleep solutions help users fall asleep more easily, measure sleep habits, track and analyze sleep during the night, wake the user in a light sleep phase, and provide insight into how sleep quality is improved. Sleep Cycle is used as one of the sources for statistics on sleep and contributes with its sleep database to improvement of sleep habits, increased sleep awareness, research and reporting on sleep worldwide. The Sleep Cycle group consists of the parent company and its wholly-owned subsidiary Sleep Cycle Sverige AB. The business is essentially conducted via the parent company.
Subscriber Decline: Paying subscribers fell by 2.2% year-over-year to 878,000 due to softer market conditions and lower new customer intake.
ARPU Drop: Average revenue per user (ARPU) declined by 3.9% to SEK 271, mainly due to currency effects and discounted offers.
Partnership Revenue Growth: Revenue from partnerships jumped 68% year-over-year and now makes up 9% of total revenue.
Stable Profitability: EBIT margin remained strong at 28.4%, continuing a trend of profitability despite weaker sales.
Sleep Apnea Initiative: Clinical study for the AI-powered sleep apnea screening is underway, with a goal to launch by the end of next year.
Diversification Strategy: Management highlighted success in growing high-margin partnership and licensing revenues to offset reliance on app store channels.
Market Challenges: Demand in app store channels continues to soften, and management does not expect this trend to reverse in the near term.
