More deal news! This time from the UK, where a customer is replacing an existing system with Flowscape’s system. There is potential for further deals within companies of the same group. Recurring revenue increased by approximately €20K per year as a result.
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One should certainly be satisfied with the number of orders, let’s hope more are signed before the end of the year.
”This customer is part of a group where some companies already use Flowscape. The parent company has now chosen to replace its existing solution with Flowscape.”
There could still be more coming from here as well.
More and more often, orders also include ”workplace analytics to measure the occupancy of their office.”
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More deal news coming in from the UK again. A deal worth just under €20k in terms of ARR. However, it’s a global software house, so there’s plenty of growth potential. Q4 seems to have gone excellently, and on Friday we’ll get info regarding Q3. Things seem to be going well, so we’re waiting for Friday’s figures with confidence 
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Another announcement is out. This time, launching a major partnership in the IMEA region. A partnership agreement has been signed with Avientek. Apparently, Avientek is one of the leading AV equipment suppliers in the mentioned region, and the partnership offers Flowscape excellent opportunities to reach new customers. The collaboration has already resulted in one deal.
Flowscape’s interim report was released last Friday. The report did not offer any major surprises. Slow and steady growth continued. Most attention was focused on the weaker-than-expected cash flow, which the report explained was due to projects that have started but have not yet been recognized as revenue. Due to the delay in these revenue recognitions, the increase in recurring revenue was also modest for Q3, but the situation will be corrected during Q4. The CEO still estimates the full-year cash flow to be positive.
Market demand reportedly continues to grow, and especially the new collaboration in Dubai is said to have brought a flood of customer and partner negotiations. This sounds good for next year. In the US market, decision-making regarding the development of office premises is reportedly difficult because employees are still mostly working remotely. Elsewhere in Flow’s markets, hybrid work has already become established, and Flow has market-leading tools to support this change.
The share price reaction has been moderate, and in my opinion, the stock is still at an affordable level relative to performance. So there is still time to get in on the rise
Another new deal from Flowscape. This time a municipal customer from Sweden, which increased recurring revenue by approximately €38,000. Q4 will be a record quarter in terms of revenue, but let’s see if the record for recurring revenue growth is also broken. The end of the year has traditionally been strong sales-wise
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Let’s update the situation here as well. In December-January, deals have mostly come from the Swedish side. Just yesterday, the deal news for this year kicked off with a major Finnish-Swedish company becoming a client (rumored to be Stora Enso). The client has operations in 40 countries, so the expansion potential is huge We are eagerly awaiting the Q4 results in February. The share price seems to be weighed down by reductions made by a major owner. Since there is nothing alarming in the company’s operations, I’ll continue adding to my position.
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Flowscape published its Q4 interim report on 21.2. The figures were good:
- EBITDA positive for the full year
- EBIT positive for the final quarter
- Full-year cash flow positivity was missed due to delayed payments (however, by the time of the report, cash flow was already positive)
- Record revenue and amount of recurring revenue
- Positive expectations for 2024
- Results are expected particularly from the IMEA region partnership
- The US market is believed to be awakening
- High activity is seen in the Nordics, where they win a large percentage of deals
- New product updates will be released, bringing additional sales potential even for current customers
The results were positively received by the market (approx. +20%), but the company still appears highly undervalued when looking at the share price. A major owner has been reducing their stake during Q4 and has apparently continued to do so during the early part of the year. Since this is a low-liquidity stock, it has been possible to accumulate shares cheaply relative to the risk. As the company turns profitable, I believe interest in the stock will grow, even though it is still a relatively small company (50M SEK revenue). The company is also practically debt-free, so there is no risk in that regard either.
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Are there any other Flowscape investors left on this forum? Let’s post an update on the situation after a long while.
The results published in February turned Flowscape profitable for the first time. The year 2024 (2025) in figures:
- Revenue: approx. 44M SEK
- EBITDA: +10.5M SEK
- EBIT: +2.2M SEK
- ARR: 37.5M SEK (+10% annual growth)
A lot has happened in the company over the past two years. The CEO changed at the beginning of Q4 2024, and he has clarified the business operations. The focus is now on the Nordics, and there has been investment in the in-house sales staff. There have been many changes at the management level; the previous CEO (the main owner) stayed on to lead product development. Product development has been more clearly centralized in Sweden. In my opinion, the company’s valuation has not kept pace with the improving key figures. The valuation is currently at an attractive level, and the share price is partly weighed down by “SaaS-phobia” and a decrease in the number of Swedish retail investors. However, a new record in ARR has been set every quarter, and now that the result is in the black, positive earnings will start accumulating faster. The Q1 report will be published at the end of May, so I believe the valuation will start to rise as the profit continues to grow. The company also remains debt-free, and the cash position is good. Last year, people joined the board who might also signal that the main owner wants to make an exit in the coming years.
Edit: Just before May Day, a significant new customer acquisition was also announced when the Norwegian equivalent of YLE, NRK, started using Flowscape’s products.
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