"Litium is due to report its Q1’20 report on 27 April, and following our estimate changes, we forecast that Litium will reach an ARR of SEK 45m, +32.1% y-o-y. We believe that net sales will amount to SEK 13m, where 94.7% of net sales are recurring. However, seeing as Litium has continued to invest in its personal base, we forecast that opex will amount to SEK 14m, which should result in a negative EBIT of SEK 2m, for a margin of -15.3%.

Looking ahead, we believe that Litium could face some headwinds in Q2, as customers hold off on taking large investment decisions such as implementing new e-commerce solutions. In the long-term, however, we believe that the COVID-19 outbreak will highlight the importance of retailers offering products through digital distribution channels, and this should provide an upswing in demand for Litium’s solution in the long-term."

Link to commissioned research below.

Link to the analysis