THE PRESIDENT HAS THE FLOOR
It’s time to sum up Q1, 2022. I note that we continue to deliver our solutions and services in a stable manner despite a number of concerns in the global market. Both the war in Ukraine and the remnants of the pandemic have brought component shortages that will affect the entire market for at least the current year and probably also in 2023.
With these conditions, we proudly present a good start to the year. Our turnover for the current period amounts to 27,841 KSEK, which is an increase of 15% compared to the same period last year (24,262 KSEK) and EBITDA amounts to 2,629 KSEK, which is an increase of 132% compared to the same period last year (1,133 KSEK).
Our experience, expertise and knowledge in this field have been recognised in the market. This is helping to keep demand for our services growing – even more than we had anticipated. In February, IDG will recognise us by nominating us for Tech Company of the Year! We also make it to the finals and can humbly say that we are one of ten amazing companies to be counted as the top tech companies at the Tech Awards Sweden. In March, NVIDIA will designate us to NVIDIA’s DGX-Ready Managed Services Program.
CGit will be one of a select few vendors authorized to help enterprises manage distributed NVIDIA DGX (AI) platforms. It’s a real stamp of quality that we will take with us in the further development of CGit. The market for applied AI continues to accelerate in a growing number of industries. The need for access to platforms for, among other things, computing capacity, but also for in-depth expertise in the field and an understanding of how Swedish industry can take the next step in development using new technology, is constantly increasing. In this paradigm shift, we stand ready with knowledge, skills and experience. We also have ready-made concepts for AI as a service and solutions for the entire food chain, “From data to Wisdom”. In the first quarter, January – March 2022, we have a steady growth in annual recurring revenue (ARR) increasing by 6% and we see a very positive trend in our as a service concepts.
Our AI solutions business has a margin of between 15-20%. In this segment, we see increasing competition from large global players who want to “buy into” markets. Compared to these global players, CGit has a unique offering. We are increasing our competitiveness by offering proprietary software such as AiQu and SnapXS and launching our “AI as a service” service. CGit can thus deliver a complete offering – from the data centre, through ML Ops to Applied AI. This is unique in the market and ensures that CGit further advances its already strong position in AI in the market.
We have many trend arrows pointing upwards for us: turnover, profit, contract revenue and number of employees. We grow organically and with responsibility. Slowly, we are getting more and more skilled and talented people in our fields. Today we have 32 employees, an increase of 20% compared to the same period last year (27). At the moment, we are seeing the most growth in the consulting area, where we are primarily hiring systems engineers, devOps and data scientists.
CGit continues to build and develop our knowledge house in AI with deep expertise and experience. We are now an established player in the market and see ourselves as a leader in AI, Deep Learning and its associated services and concepts related to advanced computing and computational capabilities.
The market, technology development and business have seriously embarked on the path to digitalisation and Industry 4.0 and we are taking the baton to be the natural guide into the next paradigm shift. Our sights are set and our focus has increased on continuing to build our knowledge house that provides the market with expertise, experience and services across the entire AI and Deep Learning ecosystem.
Together with Aixia, which is part of the CGit group, we continue to strengthen our unique offering. This is through our advanced scheduler AiQu, which drastically reduces the complexity of scheduling and using powerful computational resources, and SnapXS, our data management software package, which enables the effective use of Big Data in an AI ecosystem. These solutions form the basis of our AI as a service concept. AI Made in Sweden.
Mattias Bergkvist, CEO
For more information, please contact the Company at:
CEO Mattias Bergkvist
Telephone: 031-762 02 40
This information is information that CGit Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 20-22-05-20.
CGit is an IT company based in Mölndal and is part of a group where the wholly owned subsidiary CGit since 2007 has been active in the construction and development of IT infrastructure, including. AI/Deep Learning platforms data centre, security, management, hosting, networking & communications and backup/DR. The company provides services in three business areas; IT operations, IT consultants and IT products, and currently has around 120 customers across several different industries.
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