Fortnox is a leading provider of accounting, time reporting, and invoicing solutions for businesses, offering web-based software accessible on both computers and mobile devices. With its headquarters in Växjö and around 900 employees, Fortnox has established a strong presence in the market. The company’s largest shareholder, holding about 19% of the shares, is financier Olof Hallrup.
In August 2024, Fortnox experienced an unexpected change in leadership when Vice CEO and CFO Roger Hartelius took over as acting CEO following the abrupt departure of Tommy Eklund. This transition caused a 14% drop in Fortnox’s stock price. Hartelius, who has been with the company since 2017, owns shares worth approximately 16 million SEK.
Financial projections indicate that Fortnox has been one of the fastest-growing companies on the stock market in recent years, with revenue expected to exceed 2 billion SEK in 2024. The company has achieved an average annual growth rate of around 31% over the past five years, driven mainly by organic growth supplemented by strategic acquisitions.
One of Fortnox’s key strategic goals is to double its customer base and increase the average revenue per customer by 2025. By the end of the third quarter of 2024, the company had 585,000 customers with an average monthly revenue per customer of 293 SEK. The company’s operating profit has increased by 38% annually over the past five years, with an average EBIT margin of 38%.
In a surprising move, Fortnox’s former CEO Tommy Eklund decided to step down during discussions about the company’s future plans in 2024. This decision led to the reshaping of Fortnox’s organizational structure and the formulation of new financial goals for the coming years.
Fortnox’s market share in Sweden is estimated to be around 37%, with significant presence in the micro-business, small business, and larger enterprise segments. However, recent scrutiny from Financial Times raised questions about the accuracy of Fortnox’s reported market share, prompting the company to revisit its market analysis and update its figures accordingly.
In the competitive landscape, Fortnox faces stiff competition from industry giants like Visma, which has been actively acquiring companies to expand its portfolio of business solutions. Visma’s recent bid for Danish software company Penneo highlights the ongoing consolidation trend in the industry, with companies seeking to broaden their service offerings and market reach.
Despite Fortnox’s impressive growth trajectory and strong market position, the company faces challenges related to its valuation and future growth prospects. With a high P/E ratio for 2025 and intense competition in the market, Fortnox will need to continue innovating and expanding its product offerings to sustain its growth momentum.
As Fortnox navigates leadership changes, updates its financial targets, and adapts to market dynamics, investors will closely monitor the company’s performance and strategic initiatives to assess its long-term potential in the evolving business software landscape.