Strategy and targets
Cornerstones of Digital Workforce strategy
1. Continue expanding business and developing advanced solutions in the Nordics
Digital Workforce’s goals in the Nordic market consist of achieving high organic growth and profitability by leveraging the existing customer base and strong market position while developing new Robotic Process Automation and Intelligent Automation solutions.
2. Accelerate growth in US & UK by focusing on core offering
Digital Workforce’s main goal is to further accelerate its strong growth in the US and the UK automation markets by leveraging its well-developed core expertise from the Nordics, its vertical expertise and, in the view of the company’s management, strong market position in conquering markets. In these markets, Digital Workforce intends to invest in particular in a sales organisation and in delivery capabilities. Digital Workforce considers it a possibility to support organic growth in high-growth markets with acquisitions.
3. Strengthen delivery resources, capabilities and management tools to support scalable growth
Digital Workforce targets a clearly positive adjusted EBITDA margin by the end of 2026. In the longer term, the Company targets an adjusted EBITDA margin of over 20 percent, but in the period 2021–2026 the Company will prioritise investments for growth over profitability.
The investments in new sales and delivery resources to accelerate growth especially in the UK and US markets are expected to have a temporary negative effect on the Company’s profitability, as it will be necessary to increase costs in said markets before the revenue from those markets will grow. However, the Company estimates that it will achieve its profitability goals, because the Company expects the profitability of its business to improve significantly as the revenue and especially the share of revenue from Continuous Services increases.
1The adjusted EBITDA is calculated by adjusting the EBITDA with respect to material items that deviate from the ordinary course of business and affect comparability. Such items include, for example, acquisition and restructuring costs and other material exceptional costs.