Interview with LeadDesk’s CEO Olli Nokso-Koivisto

For those who haven’t heard of LeadDesk before, could you tell us a bit more about your company, what you do, and which markets you address?

LeadDesk is a Finnish company offering cloud-based contact center software. Established in 2010, LeadDesk was built from the ground up as a cloud-native solution, setting us apart from competitors who have transitioned from traditional on-premises software. This unique foundation allows us to deliver efficient, reliable, and high-quality solutions that empower businesses to optimize their customer service and sales processes.

We are crucial to our customers’ daily operations, with more than 20,000 users relying on our platform every week to handle customer interactions across various channels. Our solutions help businesses manage hundreds of millions of customer engagements annually, making LeadDesk an integral partner for companies focused on delivering exceptional customer experiences. Our clients benefit from a streamlined, centralized system that does not only enhance service efficiency but also significantly reduces personnel costs, by up to 20%, through automating and simplifying core processes within contact centers.

LeadDesk’s market reach is twofold. Our home market, the Nordics, encompassing Finland, Sweden, and Norway, is where we have an established presence and hold a significant market share. In this region, we have built a reputation as a trusted provider with a robust client base, especially within key verticals. Alongside our home market, continental Europe, including Denmark, Germany, Benelux, Spain, and France, is a growth market for the company, where we are replicating the success, we’ve achieved in the Nordics. This balanced approach allows us to combine the stability of our Nordic markets with the high growth potential in continental Europe, driving our expansion while maintaining operational profitability.

Could you tell us more about your product/service in cloud-based contact center software, its advantages, and how it compares to competitors offering other solutions?

LeadDesk’s cloud-based contact center software offers a uniquely integrated, multi-tenant solution that is designed to meet the complex needs of customer service and sales functions. Unlike many competitors that have retrofitted traditional software for the cloud, LeadDesk was built as a fully cloud-native solution, providing our clients with a high level of flexibility, scalability, and reliability. This architecture enables us to offer a unified omni-channel experience, seamlessly supporting interactions across telephony, email, chat, and more, all within one cohesive platform. This consolidation simplifies operations, reduces human error and crucially lowers costs, thus making it a preferred choice for businesses needing efficient, reliable, and scalable customer engagement solutions.

LeadDesk is unique in being both a software provider and a full-stack telecom operator. We rank among the top telecom providers in Finland and Sweden, which allows us to deliver integrated, high-quality telecom services within our platform. Being a registered telecom provider in all countries where we operate means that we can guarantee top-tier voice quality and connectivity, which is often a key consideration for businesses. Many competitors rely on third-party telecom providers, which can lead to inconsistencies in service. However, with LeadDesk, clients receive a consistent, mission-critical service that supports all aspects of their customer engagement processes, creating a seamless experience for both users and end customers.

Moreover, our solution is fully self-provisioning and user-friendly, making it easy for clients to deploy, customize, and expand as their needs grow. With LeadDesk, customers receive a single, unified system that streamlines their operations and reduces complexity. Our approach to omni-channel service further differentiates us, as it eliminates the need for separate applications for each communication channel, ensuring that all interactions are managed in one place. This setup does not only enhance productivity but also minimizes the risk of operational disruptions, allowing companies to focus on what they do best while trusting LeadDesk to manage their customer interactions.

LeadDesk released a strong Q3 report for 2024. Are there any specific highlights or achievements from this quarter’s performance that you would like to share?

The Q3-2024 report was a testament to LeadDesk’s commitment to sustainable growth and profitability. One of the this year’s standout achievements has been our acquisition of Telemagic, a Norwegian competitor, which has further solidified our market position in the Nordics. This acquisition aligns with our strategic focus on profitability. As we continue to prioritize profitability, we are better positioned to support our M&A strategy, leveraging our financial strength to pursue acquisitions that enhance both our market reach and technological capabilities.

This quarter’s performance reflects the success of our twofold approach: maintaining stability in the Nordics while expanding in continental Europe. By strengthening our existing market position and focusing on profitable growth, we have set the foundation to continue scaling effectively, using our resources to drive value for both customers and shareholders. The acquisition of Telemagic highlights our commitment to long-term profitable growth in our  home market.

With the growth in annual recurring revenue, particularly in the Spanish and Dutch markets, could you elaborate on what has driven this regional success and how LeadDesk plans to build on it?

The strong growth we’ve experienced in Spain and the Netherlands is the result of a carefully tailored, region-specific go-to-market strategy that combines local insights with targeted marketing and sales efforts. We’ve established subsidiaries and local sales teams in both countries, allowing us to engage with clients on a more personal level. This approach has been instrumental in building trust and credibility, essential components in these competitive markets. Our strategy integrates inbound lead generation, outbound sales, and active participation in industry events to maximize visibility and attract a steady pipeline of prospects.

In the post-COVID landscape, in-person events have proven especially effective, allowing us to showcase our solutions and interact directly with potential clients. By continuing to invest in on-the-ground efforts and reinforcing our brand presence, we are well-positioned to sustain growth in these markets. We view our success in Spain and the Netherlands as a blueprint for expansion in other European regions, combining digital marketing with localized sales strategies to drive sustainable growth and build enduring customer relationships.

In the Q3 report, you mention that the Nordic market for SME customers has been challenging, while enterprise clients continue to show positive revenue growth. What strategies is LeadDesk considering to better support SME customers in this region?

The Nordic market, particularly for SMEs, has been affected by challenging macroeconomic conditions. In Finland, for example, a downturn has led to increased business closures and bankruptcies, which impacts demand for customer engagement solutions among smaller enterprises. Despite these challenges, LeadDesk remains committed to supporting our SME clients by providing adaptable, cost-effective solutions that help them streamline their operations even in difficult times.

Our growth strategy is increasingly focused on continental Europe, where the market dynamics offer more stability and opportunity. While our primary efforts are directed toward scaling in larger European markets, we continue to provide our Nordic SME clients with tailored support and access to scalable solutions that can adapt to their unique needs. By balancing support for the Nordic SME segment with our broader growth goals, we continue to serve our diverse customer base effectively.

Mergers and acquisitions are part of your growth strategy. Are there specific types of companies or technologies that LeadDesk is prioritizing for future acquisitions?

LeadDesk’s M&A strategy is focused on two primary goals: strengthening our market position in key regions and expanding our technological capabilities. We look for acquisitions that either bolster our presence in a specific region, as with our recent purchase of Telemagic in Norway, or bring specialized technology that complements our mission-critical software offerings. For example, our acquisition of GetJenny  — a leader in conversational AI — enhanced our ability to deliver advanced automation capabilities, positioning us well in a market where demand for AI-driven customer service solutions is rapidly growing.

When evaluating potential acquisitions, we consider several factors, including the pre- and post-synergy multiples, market access, and technology integration opportunities. We prioritize acquisitions that align with our long-term vision of providing a full-stack, omni-channel contact center solution that addresses every aspect of the customer journey. By strategically acquiring companies that offer either market reach or innovative technology, we create value for our clients through enhanced capabilities and a broader, more comprehensive service offering.

Is there a recent significant event or upcoming milestone that you believe will play a key role in shaping LeadDesk’s future trajectory?

One of the most significant shifts for LeadDesk has been our strategic focus on continental Europe as our primary growth driver. This decision reflects our commitment to capitalizing on the larger market opportunities in regions where SaaS adoption is still expanding. The Nordic market, while strong, is comparatively mature, the expanding in Europe allows us to capture new customers and establish a strong presence in these high-potential markets.

Additionally, we are heavily investing in artificial intelligence (AI) and automation capabilities, which are poised to become a major differentiator in the contact center space. By the end of the year, we aim to integrate AI-powered transcription and other automation tools as part of our core offering, providing customers with enhanced functionality that improves efficiency and reduces labor requirements. Our focus on both geographic expansion and technological innovation ensures that LeadDesk is well-positioned to drive value for customers and shareholders alike, setting the foundation for sustained growth.

Where do you see LeadDesk in three years from now?

In the long term LeadDesk aspires to be the leading provider of contact center software in Europe, with a revenue target of €100 million and a 20% EBITDA margin. Since going public in 2019, we have nearly tripled our revenue – our continued success underscores our capacity for scalable growth. We expect our growth trajectory to be supported by three core pillars: profitable expansion in the Nordics, accelerated growth in continental Europe, and strategic acquisitions that reinforce our market position and technological offerings. This multi-faceted approach allows us to build on our strengths and capture opportunities in a rapidly evolving market, positioning LeadDesk as a trusted partner for businesses across Europe.

Could you mention three reasons why LeadDesk is a good investment today?

• Proven Track Record and Strategic Expansion: LeadDesk has demonstrated consistent growth and successful expansion, with a solid foothold in the Nordics and a rapidly growing presence in continental Europe. Our track record underscores our ability to deliver on both revenue and profitability goals.
• Best-in-Class Software with a Focus on Profitability: Our cloud-native, multi-tenant platform is tailored to meet the unique needs of modern businesses, offering a single, integrated solution that simplifies operations and enhances productivity. Our commitment to profitability ensures that we are well-equipped to support our growth initiatives and pursue strategic acquisitions.
• Commitment to AI and Technological Innovation: LeadDesk’s focus on AI and automation positions us at the forefront of the contact center industry. By investing in technologies that reduce labor costs and improve efficiency, we provide clients the tools they need to thrive in an increasingly competitive landscape, making LeadDesk a forward-thinking investment with strong potential for long-term value creation.