Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tobii AB (TBIIF, Financial) achieved a significant EBIT improvement year-on-year for Q3 2024, driven by net sales growth and cost reductions.
- The company successfully integrated its acquisition of Photon Nation, realizing synergies that enhance its product portfolio and reduce investment needs for future platforms.
- Tobii AB (TBIIF) increased its presence in the automotive interior sensing market, with over 550,000 vehicles on the road using its technologies by the end of Q3 2024.
- The integration segment, which includes revenue from the Photon Nation acquisition, delivered a positive EBIT of SEK 49 million for the second consecutive quarter.
- The gross margin improved to 80% in Q3 2024, up from 75% the previous year, due to a favorable shift in the mix between business segments.
Negative Points
- Organic growth for Tobii AB (TBIIF) was negative at minus 6% for the quarter, indicating challenges in generating growth from existing operations.
- The products and solutions segment posted a negative profitability of minus SEK 22 million, despite slight improvements from previous quarters.
- The autosense segment, while showing improvement, still reported a negative profitability of minus SEK 44 million in Q3 2024.
- The company anticipates a decline in revenue from the Photon Nation acquisition as it moves into 2025, which could impact future financial performance.
- Tobii AB (TBIIF) is expected to incur one-off restructuring costs in Q4 2024, which may affect short-term financial results.
Q & A Highlights
Q: What is the rolling 12-month run rate, OPEX entering Q4 excluding amortizations and appreciations? The cost base was said to increase again.
A: We don't have the rolling 12-month figure. We use Q2 as a baseline since it was the first full quarter post-acquisition. We guide from this baseline to compare operational expenses in Q2, Q3, and expectations for Q4 and beyond.
Q: Please remind us about your banking facilities. Will you need additional SEK to secure your path to profitability? Would you consider a directed equity issue?
A: We are closely monitoring our cash position and working in a dynamic environment. We are focused on cost reductions and driving sales. We believe we can operate within our current cash resources, and we have a SEK 50 million revolving credit facility.
Q: It feels like you're late on the cost savings implementation. Is this correct, or are you following your plans?
A: We are following our plans. Cost savings initiatives take time to reflect in bottom-line results, but we are starting to see some materialize. These initiatives are significant, and their impact will be more evident in upcoming quarters.
Q: Can you comment on the new design wins in the quarter and how many new cars have been added to the road with Autosense in 2024? What is your ambition for 2025?
A: We are sharing cumulative figures. Our automotive design wins will be in vehicles on the road in 2025. The combination of Tobii AB and Autosense is compelling for customers, and we see increased RFQ activity. This will accelerate as our SCDO program meets regulatory requirements.
Q: On integrations, you mentioned M&A contribution in integrations is around SEK 63 million, and revenue from the acquisition will decline in '25 and '26. How much should this decline one year from now?
A: Most of the acquisition-related revenue will decline in 2025. However, we expect the integrations segment to continue reporting a positive EBIT from other activities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
