First the pension company divested, now funds are selling (forced sale?).
The company should buy back its own shares through a tender offer instead of paying a dividend.
5 Likes
@Joni_Gronqvist, did I understand correctly from that presentation that DWF has a framework agreement with the UK NHS that allows for expansion into different hospitals or similar, possibly on a really fast schedule? This seems interesting for the investment case.
5 Likes
Joni interviewed Digital Workforce’s CEO Jussi Vasama at the company’s investor day. 
Topics:
00:00 Introduction
00:51 Investor day in a nutshell
02:56 AI agents
09:21 Solved bottlenecks
11:25 Sales focus
8 Likes
If one assumes the market is a valid barometer, the real question is probably how low the price would be if these announcements hadn’t been made. AI is, paradoxically, both a threat and an opportunity for DWF: in-house production is increasing, but I estimate that some DIY experimenters will eventually give in and admit that AI is not, at least not yet, the silver bullet that magically solves business problems in an instant.
I haven’t been able to figure out what DWF’s moat is in the age of AI. AI tools can be acquired cheaply, and at least in theory, the same basic service can be offered with a smaller margin. What is the premium value that customers are willing to pay at the level required by a publicly traded company’s cost structure? Something is missing from the narrative.
The fault might be on my end, and as someone closely following the industry, I might see it more generally than how customers perceive it.
Perhaps it’s already clear from my previous messages, and I apologize for my pessimism, but I can’t buy into the management’s message. Words and actions are contradictory.
As @Karhu_Hylje wrote above, management is passive in its share purchases. Why don’t they signal their own belief to the market by putting money to work? When the main owner was selling, there was an opportunity to step in. Based on the hyperbole of the CMD alone, it would be desirable to follow up talk with more concrete commitment. Or, as @Mainari suggested, a substantial buyback instead of dividend payouts.
9 Likes
There is definitely potential here, and that E18 acquisition seems to be the key to growth, at least for the coming years. Especially if those UK customers can be scaled up to the Finnish level in terms of billing.
2 Likes
Here’s a new company report from Joni regarding Investor Days
We raise the share’s recommendation to Buy (previously Add) and reiterate the share’s target price of 3.2 euros. Digital Workforce held an Investor Day yesterday, where the company explained its strategy, artificial intelligence and its application within the company, the healthcare market, and its updated financial target. In our view, the strategy and narrative have become clearer in the right direction in recent years, but the evidence in terms of numbers has remained thin. Yesterday’s presentations provided a deeper insight into the company’s positioning and competitive advantages in the AI-driven market. The company appeared more confident than before about the future and about solving sales bottlenecks going forward. We changed our forecasts practically only driven by a license accounting change, which has no impact on the result. With our forecasts at the lower end of the guidance, the valuation picture of the share has become very attractive due to the share price drop (13%) (2026e EV/EBIT 12x with 9% EBITDA-%). The Investor Day presentation can be viewed here and the CEO’s interview can be viewed here.
3 Likes
Excellent thoughts, especially regarding the moat. This raises the question of what is being done so much better than others now that growth could suddenly emerge, even though it hasn’t really happened before. Is this simply relying on doubling/tripling the current invoicing from the UK customer base?
On the other hand, I see potential here, because buying a ChatGPT license for HUS (Helsinki University Hospital District) won’t accomplish anything there. So, an internal resource is needed that can build these processes, or they must be bought as a service, as is currently done, and HUS is a DW customer. Where would each hospital district even find such a skilled AI expert to do this and connect it to all interfaces? And then maintain and update it.
Healthcare, I see potential. The whole of Europe is in a situation where these processes need massive streamlining due to an aging population, and DW has a solution for this. At least according to their own words.
That Finsector is then incredibly challenging. There’s money and it’s being spent, but existing tools like Salesforce already have AI plugged in and it’s being sold very aggressively. Whether DW can break through these with its own solution is a good question mark.
I don’t know, let’s see what Q1 brings, and based on that, one can start to look at the case a bit more closely. There’s evidence of sales, but what the final numbers are remains to be seen.
9 Likes
You can also listen to CEO Jussi Vasama’s presentation from yesterday’s investor day here!
4 Likes
Jussi Vasama’s fresh interview.
I guess this company will be swallowed up by a bigger one, as CapMan’s (the largest owner’s) stooge will soon be on the board.
https://www.mobihealthnews.com/news/qa-digital-workforce-looks-expand-further-us-market
6 Likes
According to ChatGPT, the 1.4 million deal described by Vasama:
The description best fits the Mass General Brigham organization.
Reasons:
-
Located on the East Coast of the United States, in the North (Boston, Massachusetts)
-
Over 80,000 employees
-
Extensive academic healthcare system, closely associated with Harvard Medical School, among others
-
Includes top hospitals such as Massachusetts General Hospital and Brigham and Women’s Hospital
-
Internationally highly respected and one of the leading hospital systems in the United States
7 Likes
A couple of new NHS contract renewals, and Jussi did say that customer retention is 100%.
8 Likes
New NHS client announced.
10 Likes
Great 2.6M€ one-year contract from an old customer in the USA. Good work!!
13 Likes
Great stuff! I wonder why this notice is only available on their website?
2 Likes
Good question, but it was published as insider information, i.e., significant news. A glitch in the publishing system or something similar?
EDIT: The announcement was apparently published this morning at 9:45. However, it doesn’t appear in Kauppalehti’s news, for example, which is probably why it hasn’t affected trading either. The trade in question, however, is less than a 10% share of annual turnover…
5 Likes
It’s been a wild start to the year commercially.
14.1: North Savo and Pirkanmaa wellbeing services counties acquire Finland’s leading automation solution for archiving Uranus systems – total value of contracts 2 M€
28.1: Digital Workforce to deliver transformative agent automation solution to a leading Nordic large enterprise
11.2: Digital Workforce signs a $1.4M annual contract with a US healthcare organization – client’s size is comparable to European national health systems
24.2: Major insurance company implements Digital Workforce’s AI agent for personal injury claims processing, no hallucinations in production pilot
Add to this the new NHS client and an additional 2.6M! It was worth getting on board. I’m really looking forward to the Q1 results, especially if last year’s Q1 revenue was 6.5 million and only one deal was announced? That’s what I quickly gathered from last year’s announcements.
12 Likes
Here are Joni’s preview comments ahead of DW’s business review on April 22, 2026
We expect the company’s revenue to have grown strongly, driven by an acquisition. We also forecast that profitability has turned positive, thanks to the scaling of recurring services and the efficiency measures implemented. In the report, our attention will focus particularly on the traction of organic growth and comments regarding the outlook. In March, the company held a Capital Markets Day where it provided a good overview of its strategy; our comments on this can be read here.
9 Likes
Digital Workforce’s subsidiary is reporting concrete savings in an NHS case. I’m sure the rest of the NHS organizations will be signed up as customers in no time with these results.
9 Likes
Digital Workforce’s subsidiary, e18 Innovation, seems to have a pretty tight grip on the NHS. More news coming…?
3 Likes
This AI robotics outfit released strong Q1 results. Is there some springtime buzzing coming from beneath the surface of the Helsinki small-cap heap?
16 Likes