Predrag Savinovic

Predrag Savinovic asked for details on the Q1 gross margin decline, the outlook for Q2 margins given FX rates, the start of Q2 bookings, whether customer pauses are Yubico-specific, and what steps are being taken to improve sales processes.

Answer

CFO Camilla Oberg attributed the gross margin pressure to a stronger Swedish krona and significant FX volatility, contrasting with a positive inventory revaluation in Q4. CEO Mattias Danielsson added that while there are short-term swings, he is optimistic about maintaining ~80% margins long-term. Regarding Q2, Danielsson stated it's too early to predict bookings but confirmed the Q1 hesitation has continued. He also detailed sales improvement initiatives, including building a global channel program and a new commercial sales team for mid-sized companies.

Predrag Savinovic from Carnegie inquired about the PKO Bank partnership, asking about other potential unannounced deals in the financial sector. He also questioned the current and future impact of cybersecurity regulations like NIS2 and the company's pricing strategy.

Answer

CEO Mattias Danielsson confirmed the PKO Bank partnership is a public example of a broader trend and acknowledged that other, unannounced pilots with financial institutions are in progress, each with different structures. He stated that regulations like NIS2 are already providing a tailwind that is expected to increase. On pricing, Danielsson explained that Yubico prefers to increase prices by adding functionality or through new versions, and by encouraging adoption of more advanced, higher-cost products and subscription offerings, rather than simple inflationary adjustments.