Regulatory

The Nomination Committee has been informed that Ödgärd Andersson declines re-election to the Board of Directors at the upcoming Annual General Meeting in Sleep Cycle due to lack of time as a result of other assignments, and the Nomination Committee therefore revises its proposal for election of members of the Board of Directors of Sleep Cycle ahead of the Annual General Meeting 2023. With an amendment to what is stated in the notice to the Annual General Meeting, the Nomination Committee thus proposes that the number of Board members should comprise of a total of four Board members to be elected by the meeting, with no deputies, and that the Board members Anne Broeng, Olof Nilsson and Rasmus Järborg should be re-elected as Board members, and Mathias Høyer shall be elected as new Board member.

The shareholders of Sleep Cycle AB (publ) (“Sleep Cycle”), reg. no. 556614-7368, are hereby invited to attend the Annual General Meeting (the “AGM”) to be held on 8 May 2023 at 10.00 CEST at Jacy’z hotel, floor 24, Drakegatan 10, 412 50 Gothenburg, Sweden. Admission and registration for the AGM will begin at 9.30 CEST.

Sleep Cycle, the world’s most popular sleep tracking application, has published Annual Report 2022 for the financial year which covers January 1 to December 31, 2022.

Despite a challenging year and an uncertain environment, Sleep Cycle increased both growth and operating margin compared to the previous year. Revenue for the whole year increased by 16.6% (14.7%) to mSEK 213.3 and the adjusted operating margin amounted to 22.0% (19.9%) . Some of the highlights during the year included the launch of new features such as automatic sleep monitoring via Apple Watch, a partnership with Gympass and during the fourth quarter the launch on Huawei in China.

On the 10th of February, at 9:30 CET, Sleep Cycle will present the year-end-report 2022 for shareholders, media and other stakeholders. Participants will be able to follow the presentation via webcast.

To increase the focus on subscription growth, the Marketing and Growth teams will be further integrated with the Product teams. Due to this change, Samuel Cyprian, Chief Commercial Officer, will take on the role of Chief Product Officer and lead both teams. As a result, Sandra Hansson will leave the management team for another role in Sleep Cycle and the position as Chief Commercial Officer will not be appointed. 

In light of the public cash offer by Velvet Cichlid AB, a company controlled by a consortium consisting of GLA Invest SA, MCGA AB, h265 AB and Petter Wallin, and in order to provide the shareholders with updated information concerning Sleep Cycle AB (publ):s (“Sleep Cycle”) financial performance, Sleep Cycle announces preliminary financial information for the period 1 October–31 December 2022 and the full year 2022, respectively. The information precedes the year-end report for 2022, which will be published on 10 February 2023.

Following an overall assessment, the Board is of the opinion that the Offer does not reflect Sleep Cycle’s growth potential and fundamental value.

Gothenburg, Sweden — 19 December 2022 - Velvet Cichlid AB[1] (the “Bidder”), a company controlled by a consortium consisting of GLA Invest SA, MCGA AB, h265 AB and Petter Wallin, today announced a public takeover offer to the shareholders of Sleep Cycle AB (publ) (“Sleep Cycle”) to sell all shares in Sleep Cycle to the Bidder at a price of SEK 42.50 in cash per share (the “Offer”).

Despite a tough prevailing economic climate, Sleep Cycle continued to show strong performance in the third quarter. Income increased by 12.8% to SEK 55.0 million, and the operating margin totaled 24.7 (24.6)%, exceeding the long-term target of 20%. The somewhat weaker growth in income compared with prior quarters was to some extent, in addition to subscription revenue, due to compensation for engineering work from Samsung in the third quarter of 2021. Adjusted for this compensation, growth in income was 20.9%. Partnering with Gympass was a high point of the third quarter, as this quickly brought in new users in markets where we previously had a lower presence.

The chairman of the board of directors in Sleep Cycle AB, Lars Berg, has today informed the nomination committee that he declines re-election at the 2023 annual general meeting.

On the 28th of October, at 9:30 CET, Sleep Cycle will present the interim report for July-September 2022 for shareholders, media and other stakeholders. Participants will be able to follow the presentation via webcast.

Sleep Cycle, the market-leading sleep tracker, today announced a partnership with Gympass, the world’s largest corporate wellbeing platform, used by more than 1 million employees worldwide. With this new partnership, Gympass users will gain access to the sleep health functionality that Sleep Cycle provides. 

On Thursday 8 September, a total of 603 023 shares, corresponding to 3.0% of shares and votes, were divested in Sleep Cycle AB. The shares were purchased by three institutional investors, of which two already held shares in Sleep Cycle. The sellers were Sleep Cycle employees, who had subscribed for shares when a subscription warrant program from 2019 expired. Carl Johan Hederoth, Sleep Cycles CEO, was one of the sellers. In total he subscribed for 205 072 shares of which 150 000 were sold to repay loans that were taken to subscribe for shares. Before the warrant program expired, Carl Johan Hederoth held 24 500 shares. After the transaction, Carl Johan Hederoth holds 79 572 shares and 404 749 subscription warrants in Sleep Cycle.

The number of shares and votes in Sleep Cycle AB (publ) have changed because of warrants being exercised as part of the warrant program 2019/2022.

The positive development from the start of the year continued in the second quarter. Net sales increased by 19.0%, equivalent to an increase of 16.1% adjusted for currency effects. The operating margin increased to 24.4% thanks to effective cost control and growth in revenue. The total number of users increased but was impacted by seasonal variations and price adjustments. As anticipated, new user acquisition was only partially affected by the price adjustments, resulting in an overall higher sales value.

On the 29th of July, at 9:30 CET, Sleep Cycle will present the interim report for April-June 2022 for shareholders, media and other stakeholders. Participants will be able to follow the presentation via webcast.

At the Annual General Meeting (the “AGM”) of Sleep Cycle AB (publ) on 10 May 2022, the following was resolved.

Net sales increased by 19.2% to SEK 50.1 million, equivalent to an increase of 21.3% adjusted for currency effects. Sales continued to increase from the previous quarter, mainly as a result of product investments that had a positive effect on the conversion rate and thereby drove new users. Greater efficiency allowed for lower investments in marketing with a sustained effect, which had positive effects on the operating margin during the quarter. The total number of users at the close of the period was 920,000, equivalent to a growth of 12.2%.

On the 27th of April, at 9:30 CET, Sleep Cycle will present the interim report for January-March 2022 for shareholders, media and other stakeholders. Participants will be able to follow the presentation via webcast.

Sleep Cycle, the world’s most popular sleep tracking application, has published Annual Report 2021 for the financial year which covers January 1 to December 31, 2021. The Annual Report is available on Sleep Cycles website: http://investors.sleepcycle.com