Strategy for value creation

Our levers for value creation

Organic growth

Organic growth is a cornerstone of our value creation and a key objective for our three geographic regions and the product organization. Our intention is to outpace market growth by focusing on four strategic areas:

Enterprise expansion

This initiative focuses on growing revenue from large customers with significant demand for digital customer communications. We will strengthen and expand our leadership in the enterprise segment by leveraging our scale, reliability and global reach to win new enterprise customers and increase the share of spend within existing ones. Growth is enabled by improved customer insights and by structured upselling and cross-selling across our portfolio to address the complex requirements of enterprises.

Increase self-serve

The self-serve segment typically includes smaller companies that use our applications as well as developers who interact directly with our software. Ease of use and quick start-up time are key to winning in this segment. Customers need to be able to quickly access all required information through our web interface.

Email and conversational messaging

Conversational messaging, such as Rich Communication Services (RCS) and WhatsApp for Business, enables businesses to deliver a branded conversational experience. Sinch is uniquely positioned to benefit from increased RCS adoption, having all the infrastructure and relationships required to deliver RCS messages. Email continues to grow strongly and the channel remains highly relevant. The conversational ability of RCS and email is enhanced by the rise of agentic AI, which provides content and functionality for conversations that drive increased value add.

Partners and ecosystems

A significant share of our revenue comes from resellers, partners or ecosystems that include our offering, such as CRM software providers or e-commerce platforms. Sinch's offering may then be embedded in a platform catering to a wide range of needs. In these cases, the platform providers can leverage Sinch's backend solutions, while we can indirectly reach otherwise inaccessible client groups. The rise of AI-driven vibe-coding platforms is expected to increase the number of external applications that need to integrate with Sinch infrastructure, driving increased demand for our services.

Active capital allocation

Our capital allocation policy defines how we prioritize the use of cash generated by the business. The first priority is to maintain a strong balance sheet that acts as a solid base for the business and enables us to develop and seize market opportunities. 

Sinch operates in a fragmented landscape, creating opportunities for non-organic growth through acquisitions. These acquisitions aim to consolidate our market position and strengthen our product portfolio by adding complementary products and established businesses with the right strategic fit.

Our third priority for the use of cash is to return capital to shareholders, provided the balance sheet remains strong and there are no near-term acquisition opportunities that meet our investment criteria.