So welcome to this Q1 inside FOM. Just to be sure that everybody can hear us, can somebody in the chat in the lower corner just say that we're going through well and nicely? It should be the question. Somebody's writing, so yes, we are going through well. Okay, my name is Anders, and I'm the Digital Marketing Manager here at FOM. Some of you know that I've been here before. I'm here with our CEO, Michael Stadi. We will go through the Q1 news from FOM. If you have any questions or comments along the way, put them in the chat or questions tab, and I'll answer them or interrupt Michael and answer them as we go along. There's also a few questions from our collaborators, Stokk.io, which Michael will take when due time. They're directed towards specific segments, so.
Other than that, Michael, onto you. I'll share the slides so you can see them.
Yeah, but thanks for the introduction, Anders. And, as Anders said, we will have our first quarterly session here where we go through the newsletter and provide the opportunity for any kind of investors to ask questions about everything that we have shared, and also if you have other questions. So, if we start with the first story or the first highlight is naturally our recently published annual report. It was published on Tuesday, the 19th of March, a very nice report with strong financials. And just to dig into the highlights, well, first and foremost, the revenue, naturally, where we have increased the revenue from 2022 until 2023 by around 45%, in the range of DKK 80 million. Staff cost has also increased.
Remember that we increased our numbers of staff about we doubled it from 17 when we started the year and to 32 by the end of 2023. EBITDA-wise, we are making money. We're profitable. We're creating value. We're very proud of that. And not all companies at the First North platform, but in general, SME companies is making money. For us, it was an investment year. We moved to new headquarters and hired a lot of people. So, we are proud and happy that we could be value creating that year as well. And last but not least, we managed to close a deal with new stakeholders, new investors, very prominent names. We managed to get some institutional investors onto the company, with the most significant ones, ATP and BankInvest. So we have significantly increased our equity capital by more than 100%.
So all in all, a year that we are very proud of and will have the base platform for the future development of the company. As Anders said, there's a few questions that have been sent to us before we started. The question number one is that our revenue guidance for next year, so that would be this year, 2024, is wide and states that in the low end, the revenue could fall. And if I could put some comments on that. And that is correct. We had an extraordinary good year in 2023. Personally, what we are striving for in the first place is to reach DKK 100 million, and then we will take it from there. But we can say for sure that that will not happen this year. So the long trend is still that we're growing and we want to increase the activities.
But where we land this year will be depending on a lot of things. 2023 was extraordinary, and we are hoping to have yet another strong year. But whether we will surpass the revenue we are struggling and trying to do that, but it's not any guarantee. But we have guided as we did. The other question is about the scalability of the company. And more specifically, the question has been formulated if I can explain how scalable we are and what level of revenue that we expect to get where the income is rising faster than the cost. And I have a of DKK 70 million-DKK 75 million, and from there on, we should generate more profit than the cost. And it's just this rule of thumb that for every 2 million DKK, we should have 1 million in cost, equivalent to a person.
So if your revenue is DKK 70-75 million, we should be around 30-35 people, and that is sort of what we expect if it was a year where we did not want to invest heavily, which I will come back to. So we are still expecting to make profit and scale profitable in the future. Yes, let's skip to the next one. If you have browsed through the newsletter, you can see that we held our annual general meeting on the 2nd of April. That's always two weeks after we are publishing our annual report.
It was held physically at our new headquarters, Bryggergården, it's called, and I just want to stress that this is the time a year where you have an opportunity to come visit us, see our headquarters, see our machines, get a tour, and also to participate in the annual general meeting where you are allowed to ask any kind of questions. So, please do that next year, and everybody is welcome if you are registered shareholder with us. So please do that.
One dominant question, and I'm sure that some of you will ask me during our session here today, one dominant question at the annual general meeting was the reflections about going to main market and taking this shift from the NASDAQ platform, NASDAQ First North, to the main market, which we have postponed and which we have said to the market and informed the market in the very beginning of 2023, that that was our ambition. By the end of the year, we announced that it was postponed. I just want to stress one more time that it's not because we have canceled the idea, but we have decided to postpone it for several reasons. A, we believe that we should concentrate on growing the company and become even bigger and stronger.
Thereafter, we would very much like to restart the process of going to the main market. There's an enormous amount of compliance related to being on the main market. In all fairness, with 30 people plus, we are still a relatively small company, and we need to be slightly bigger and have slightly stronger revenue stream in order to go to the main market. Just to stress one more time, we have not canceled the idea. We have simply just postponed it. Okay. All right. Along the publishing of our annual report, we also published our very first ESG report. We started the process back in 2022, where we by the year change from 2022 to 2023 published what we called an ESG initiative.
It was not a real report, but it was sort of the foundation and the skeleton, the platform for our future ESG work. And this year, we have prepared and published a real ESG report that we think we are very, very proud of. Compared to the size, the ambitions are high. We believe that ESG is an element that investors will very much look into going forward and rate a company upon. Both customers would support our ESG initiatives. And also we hope investors will look positively at all the work that we are doing and all the considerations we're putting into these dimensions. So this is here to stay. So, browse it through. We are happy for it. A lot of initiatives. And we will continue that on that journey and that path going forward. We have just, like a tiny thing.
It's a bit funny, but it's not something that I actually had encountered, but I was made aware before we sent out the newsletter this time here by Jonas Jakobsen, who's running a Vækstaktier , the community, that when we changed the guidance a few weeks before we published the annual report, this was actually the 10th change and raise of guidance since we got listed and since our IPO. So we had a sort of small anniversary. I didn't count it, because this is not on purpose. And the future, I just want to stress that is very unpredictable, but it was just a fact that he was browsing through our all our corporate announcement, and he can see that it was a tenth time that we had changed.
So in numbers, and I just want to, because I looked at the numbers, when we listed the company back in 2020, we had a revenue of DKK 8 million. And now we have just published an annual report where we have surpassed DKK 80 million. So we have 10x our activity and our revenue since we got listed. So, in all fairness, we think that 2023 was a very good year for us. Now to something completely different. W e're looking at the products. We are looking at the technology, and we have developed over the last long time a very advanced machine that we have been launching a few days ago. I n the very last days of 2023 from Q1, and therefore it's here in the newsletter here.
Very advanced, material research machine that we now are starting to promote, heavily. Yeah.
And way, way more on that, if you follow on the website going on, we've made small videos and so on. So yeah, absolutely something to go see.
Yeah. And yeah, this is just a journey that we will continue to be in the forefront, new technologies, new products, and so forth.
Can you see there's a question coming in? And then, actually on this, this topic, of course, product related, how many products do we expect to launch this year?
Yeah, that's a good question. We have mapped it and have set the roadmap for all our R&D people, that goes from mechanical engineers, automation specialists, electrical engineers, and so forth. For 2024, we are expecting to be launching 4 new products, 4 new machines for various segments and various application fields. So that is pretty ambitious. Yeah, one launch here in Q1, and let's see when the other comes, but 4 new products for this year. So, that's going to be really interesting.
Absolutely. And, nice with a lot of marketing material for me too. Yes, that will be really good.
Yeah. So, okay. Next, theme is that the annual general meeting is the time of year where you are creating the governance of the company. That is the highest level that is the board, the board of directors, and in our articles of association, we have listed that we can be between 3 to 5 members on the board. This year, we have decided to invite 2 new candidates onto the board.
One is Bjørn Sørensen , and the other one is Birthe Tofting , as we have sent out. We believe they have competencies that can support us and, and help us scale up the company. And just super shortly, because while you sent out the invitation for the AGM, annual general meeting, you need to make a list of why you believe they are competent, to join the board and be on our board. And just shortly, Bjørn has been owner of a company and is now on the board of several companies, but used to scaling companies and also companies that have been owned by capital funds. For Birthe, her specialty is branding of companies, PR marketing, and also ESG. So each one has their own sort of competencies and some niche areas where they are specialists within.
So we welcome both of them and, yeah, look very much forward to work with them in the future. Absolutely. Yes.
Our whistleblower.
Yeah, we introduced that and published that in the very beginning of the year that we have decided to adopt for a whistleblower scheme. So why does a small company actually do that? Well, a whistleblower scheme is because that you want to be extremely transparent. And if something happens, you should have employees and other ones closely related to the company to be able to report if they experience any kind of irregularities or legal activities. And it's just important to stress for us that the model that we have chosen here is that none of these contacts, or if they register anything, it would not go to me or to our board. It would go to an external international law firm.
It's simply because that we would like to signal as a small company that we would slowly adapt to all the things that even larger companies have. And because that we believe that we have nothing to hide, and therefore we have decided to arrange this kind of whistleblower scheme. Any kind of inquiry would go directly to an external part that would look into if something illegal is happening. So we have done that. And, yeah, I think that it's a good idea, a role model for other companies that should consider to do the same. Yeah.
Can we move on to something also very different to charity?
Yeah, this one is something that is deeply rooted in my heart. I have been, as a CEO, naturally, reflecting and thinking of how do we stand out as a company?
What can we do to attract candidates and attract people that would love to work for us? That is what you call employer branding. What we have decided to do is that on an annual basis, we would randomly pick one out of the staff that we would offer that person, a man or woman, an opportunity to donate DKK 5,000 for any kind of charity. If it's sort of a legal organization in Denmark and registered as a legal organization in Denmark, the company would donate DKK 5,000 for that organization as long as that person is employed at the company. So in theory, for many, many years. We have done that for the last couple of years. As you can see now, we are up to 6 organizations that FOM is sponsoring on behalf of an employee.
And then, the image or the illustration that we have chosen here is, based on this, Children's Cancer Foundation that they have invented this day where you can put on your football jersey.
Football Jersey Friday or, yeah.
And people that do that, they can privately, donate, or sponsor this, organization, which, I did personally because, I'm one of the people in the picture, but, I thought it was a good cause. It's an organization that, I think that, if you are able to, should to support. So, an element of employee, branding, and to get the employees feeling that, they, have, that they're working on a company that, actually is looking into, to charity .
Then over to the United States.
Yes, two stories into that one, but we are growing our U.S. subsidiary. People that might have been following us would know that we created a subsidiary in the States. It's based in Seattle. And the big story that we published and sent out is that our founder and my partner, Martin Kiener, will be moving there with his entire family in order to spearhead the U.S. organization and the office there. We have already hired one person and another one, Jim. Third is also hired just recently. So it would be an organization that is gradually ramping up over there. So Martin will have started the process and we expect that he would be in place around August, September this year. And naturally we'll welcome our new employees, Jim, as well.
There's a question here.
We have a question. Yes. Let me hear.
It's very simple. Why Seattle?
Yeah, that's a very good question. There's also a clear answer to that. You know, the U.S. is roughly split into the West Coast, the East Coast, and the Midwest. We have been considering Boston as well on the East Coast. Seattle was a place where we have established our first and longest strategic partner at the University of Washington based in Seattle. We have a major showroom in cooperation with the university. And this is where we sort of started our U.S. journey. So as this is the place we have attracted some of the first employees, this has naturally been our platform in the U.S. from the very beginning. And also, this is where we see a lot of customers in California and north of California. So that is why we have chosen Seattle. Yeah.
I think that must cover that question. Then on to some new staff hires and with all the new product launches, of course, we need more hands in sales and marketing.
Yeah, we have hired salespeople and PR marketing competencies. It's clear to see that this is what we are looking for now to boost. It's sales, it's focused on sales activities and PR marketing and so forth. We don't expect to increase the staff tremendously this year. That would be a few people. We will build an organization in the U.S., and a few positions here in Copenhagen, but we're not going to double or anything else. Now we need to create momentum and we have a platform now where we believe that we can scale. So, the hirings and the people are very closely linked to the cycle and the stage the company is in now where we have all the basic platform, all the basic functions. And now we're looking to focus on sales and PR marketing.
I don't know if that answered the question that came in, but the question that came in, are you still hiring? And how many people do you expect to hire for the next year and in five years? I think you covered the foreseeable future, but maybe the long term.
Yeah, no, we're not hiring. It's one or two special competencies for the next six months, but nothing more than that. We have examples in the future that could happen that people are leaving us for various reasons. We had one that decided to move abroad for several reasons. Of course, that would create a gap and then you would like to replace that. No, not in any sort of major terms. Maybe one or two. Was it more about the timeline?
Yeah, just in 5 years.
Yeah, 5 years is very difficult to say, but let's say 2, 3 years. Yes, for sure. We will be bigger. The curve will sort of flatten out. So it's not going like that all the time. So I always expect that, that probably in 3 years' time, I believe that we could be around 50 people, but we're not talking about 100-200 people. So maybe a handful or two more, going forward. But again, very much focused on sales and PR marketing and these things to boost. So, yeah, growth, but at a very much more modest speed.
Yeah, we won't double again.
Well, then we should really see something crazy. But that's not on the agenda. We have a room to be 50-60 people at the max where we are now, and that should cover the next few years.
Yeah. But then, you were, of course, allowed and welcome to ask questions as you did along the way. But if there's any final questions, then let us have them before we round off a little early today.
Yeah. And again, I just would like to emphasize and stress that any kind of questions you might have, send me an email directly. You have my email address on the website. You can also write to investorrelations@fomtechnologies.com. And we are trying to respond within 24 hours, all the time. So don't hesitate. Always just send us a note and we will be happy to answer any kind of questions. Please join these, sort of sessions, when we are publishing our quarterly news and we are having the hosting these webinars, where we explain what is going on and then people can ask questions.
Speaking of questions, we have two similar questions, coming in from two different here. Which segments of applications will drive the growth? That's the first question. The other question, where do you see the biggest market going forward? Pharma, fuel cells, batteries, etc.
Yeah. Good questions. We'll start with the first one, about the, that was the applications, right?
Segments and applications.
Yeah. Segments. Yeah. Historically, and strategically, we're looking at what we call energy, harvesting and energy storage. And energy harvesting is, a more sort of general word for, for the solar, industry. And that is still one of the areas that we are focused on, a lot.
Energy storage is batteries, is fuel cells, is all other application fields that are related to energy storage. That is also the other segment that we are looking into. We are trying a few new areas because customers are coming to us. We have inquiries on the MedTech segment, medical, technical things, and is closed for selling machines related to that segment. And we also, with the new product that we've just been launching, looking at a completely new segment, but it's all related to material science, and highly advanced material science. But energy storage and energy harvesting is still sort of the main, and then there would be new ones that are smaller, but still interesting to follow. I call them obelsks, you know? Yeah. And the other question was the market.
Yeah. What is the biggest market going forward?
Yeah. And I can answer that super sharply. We are standing on three pillars. That is U.S. and North America. So U.S. and Canada on one, then it's Europe, and then it's Asia. And right now we see the biggest growth in the U.S. Therefore also the decision for Martin, my partner, to go there and also the hiring of Holly and Jim, because we see a big potential in the U.S. market.
And if we go a little step deeper and look into the application area, which one is the biggest, if we can do that, as we see it?
Solar, batteries, and fuel cells is what we are focusing on.
Then a new question here. Are your customers and prospects in the enterprise category, or are you selling to smaller companies?
It's we started off in the very beginning when FOM was founded, focusing on the academic customers. Academia is universities and research institutions. Gradually we have been moving towards also the corporates. In 2023, we have sort of had an equal split between academic customers and corporates. If we double click on the corporate segment, it's sort of two types of customers. That is the startup companies that have received major, major funding and therefore need to get going. So that is sort of small companies, but with heavily funded. And then you have the big corporates that have the size where they have their own boards using their own R&D teams. So really big companies and really small companies that are heavily funded. That is sort of the two categories within the corporate slash the enterprise category .
We're almost getting close to deadline, I was about to say, but the time. Yeah. But any, any last questions? And if we don't cover them, then as Michael said a few minutes ago, please send an email to us anytime. We'll answer them. Yes. Yeah. So with that, I think we'll cut off now. Okay. Say thank you for, for joining us tonight. Take care.