Smart Eye Interim Report Q1 January - March 2024

Rhea-AI Summary

Smart Eye reported a 34% increase in Q1 2024 net sales to SEK 86.1 million, driven primarily by its Automotive segment. Gross profit rose by 41% to SEK 77.3 million, leading to a gross margin of 90%. Despite this, the company posted an EBITDA loss of SEK -23.0 million, impacted by SEK 11.6 million in restructuring costs. The operating loss stood at SEK -61.5 million. Earnings per share were reported at SEK -1.53. The company’s cash balance, including credit facilities, was SEK 243.6 million. Automotive growth was strong with 19 design wins for DMS, 5 for Interior Sensing, and 2 for AIS, totaling an estimated order value of SEK 785 million. CEO Martin Krantz highlighted increased software license revenue and maintained cost control.

Positive

• Q1 2024 net sales increased by 34% to SEK 86.1 million.
• Gross profit rose by 41% to SEK 77.3 million, with a gross margin of 90%.
• Automotive segment growth of 138%, mainly from Japan and North America.
• Strong order intake with 19 DMS, 5 Interior Sensing, and 2 AIS design wins.
• Total estimated order value for new design wins is SEK 785 million.
• Cash and cash equivalents, including credit facilities, totaled SEK 243.6 million.
• Directed share issue increased cash position by SEK 150 million.

Negative

• Operating loss amounted to SEK -61.5 million.
• EBITDA loss of SEK -23.0 million, impacted by SEK 11.6 million restructuring costs.
• Depreciation costs of SEK -28.4 million related to acquisitions.
• Earnings per share were negative at SEK -1.53.

GÖTEBORG, SWEDEN / ACCESSWIRE / May 14, 2024 / Smart Eye (STO:SEYE)(OTC PINK:SMTEF)(FRA:SE9) The Foreseen Acceleration of Automotive Sales has Started

January- March 2024

• Net sales amounted to SEK 86.1 (64.3) million, an increase of 34% compared to the corresponding period the previous year. Business area Automotive continuing to drive the growth in the quarter.
• Gross Profit amounted to SEK 77.3 million, an increase of 41% compared to the corresponding period the previous year. Gross Margin amounts to 90% (85%) which is due to a higher share of software sales in the quarter.
• EBITDA amounted to SEK -23.0 (-44.2) million. The improved result is driven by higher sales and lower OPEX. One-time expenses due to restructuring costs impacted the result negatively with -11.6 million.
• Operating loss amounted to SEK -61.5 (-81.9) million. Depreciation of the surplus value created in conjunction with the Affectiva and iMotions acquisitions amounts to SEK -28.4 million.
• Earnings after tax per share are -1.53 (-2.33), and after full dilution -1.53 (-2.33).
• Cash and cash equivalents totaled SEK 161.2 million at the end of March. The cash ending balance including credit facilities amounts to SEK 243.6 million.
• Strong order intake during the quarter included 19 design wins for DMS, 5 design wins for Interior Sensing and 2 design wins for a commercial vehicle manufacturer (AIS). The total estimated order value for these design wins amounts to SEK 785 million based on estimated product life cycle projections.

Comments from the CEO

The most significant development in the first quarter is that our software license revenue from the automotive sector is gearing up as planned. The company is growing 34% year on year, with the majority of the growth coming from Automotive. The costs are kept firmly in control, and we are eagerly anticipating that the revenues ramp-up, driven by higher car production volumes. In the period we chose to increase our cash position by 150 MSEK with a directed share issue. After our last earnings call it became clear to us that we had the option to raise cash that way on favorable terms, as an alternative to a debt facility. We concluded this was the best alternative, in terms of risk minimization, and executed the deal in a short time frame with low discount.

Automotive
We are proceeding according to our plan. The Automotive business is growing with 138% (121% in Q4 2023). The increased growth rate comes mainly from production volumes in Japan and North America. The production volumes also continue to rise in South Korea while Europe and China will start to increase shortly. Most of the 322 car models have not started production, so higher growth in the future is to be expected. The non-recurring engineering is on a higher level than last year, due to all the recently won car programs. We had our first two OEM programs with Interior Sensing during the quarter. It is very welcome, and we continue to push forward on this new and exciting development track. We intend to become market leaders here as well.

AIS's main achievement this quarter was securing a very big contract with a well-known European truck manufacturer, with a combined order value of 150 MSEK with start of production in 2025. We are pursuing several bus manufacturers that need a DMS system to comply with the upcoming European legislation starting this year. This will start to ramp up in Q3. The fleet customers are adding up and will during this year become a significant and welcome addition to the already fast-growing automotive business area.

Behavioral Research
The business area grew by 6% during the quarter, mainly coming from the eye trackers of Research Instruments. All product categories and geographic regions grew and helped make Q1 the best quarter so far for RI. Both iMotions and Media Analytics slowed down a bit, which probably has to do with the strong end of year effect we saw in Q4. Next quarter looks very promising for the entire business area. We showcased a new reference measuring product at World NCAP conference in Munich, which has gained a lot of market interest. The timing for this product couldn't be better, given all the regulatory groundwork taking place currently.

Final Words
We are perfectly set up for the year to come. We have an uniquely strong automotive production program pipeline. We have a dedicated and enthusiastic organization in place delivering the production projects that we won. We have a solid research business as a base platform, and we have the exhilarating fleet and aftermarket business that quickly can turn into yet another cash cow. The inevitable ramp-up of the production programs is such that it supports our forthcoming profitability. We also filled up our war chest so that we are secure for anything unexpected that might occur. We have never been in a better position with Smart Eye.

Martin Krantz
CEO Smart Eye

For more information:

Martin Krantz, CEO Smart Eye AB
Phone: +46 70-329 26 98
Email: martin.krantz@smarteye.se

About Smart Eye

Smart Eye is the leading provider of Human Insight AI, technology that understands, supports and predicts human behavior in complex environments. The company is on a mission to bridge the gap between humans and machines for a safe and sustainable future. Supported by Affectiva and iMotions - companies it acquired in 2021 - Smart Eye's multimodal software and hardware solutions provide unparalleled insight into human behavior.

In automotive, Smart Eye's driver monitoring systems and interior sensing solutions improve road safety and the mobility experience. The company's eye tracking technology and iMotions biosensor software platform are also used in behavioral research to enable advanced research in academic and commercial sectors. In media analytics, Affectiva's Emotion AI provides the world's largest brands and market researchers with a deeper understanding of how consumers engage with content, products, and services.

Founded in 1999, Smart Eye is a global company headquartered in Sweden, with customers including NASA, Nissan, Boeing, Honeywell, Volvo, GM, BMW, Polestar, Geely, Harvard University, 26 percent of the Fortune Global 500 companies, and over 1,300 research organizations around the world.

Visit www.smarteye.ai for more information.

Visit our investor web for more financial information: https://smarteye.se/investors/

Smart Eye is listed on the Nasdaq First North Growth Market. The Company's Certified Adviser is Carnegie Investment Bank AB (publ).

This information is information that Smart Eye is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-05-14 08:00 CEST.

Attachments

Smart Eye Interim Report Q1 2024

SOURCE: Smart Eye

View the original press release on accesswire.com

FAQ

What was Smart Eye's net sales for Q1 2024?

Smart Eye reported net sales of SEK 86.1 million for Q1 2024, a 34% increase compared to the same period last year.

How much did Smart Eye's gross profit increase in Q1 2024?

Smart Eye's gross profit increased by 41% to SEK 77.3 million in Q1 2024.

What was Smart Eye's EBITDA for Q1 2024?

Smart Eye reported an EBITDA loss of SEK -23.0 million for Q1 2024.

What was Smart Eye's operating loss for Q1 2024?

Smart Eye's operating loss for Q1 2024 was SEK -61.5 million.

What were Smart Eye's earnings per share in Q1 2024?

Smart Eye reported earnings per share of SEK -1.53 for Q1 2024.

How much cash and cash equivalents did Smart Eye have at the end of March 2024?

Smart Eye had cash and cash equivalents totaling SEK 243.6 million, including credit facilities, at the end of March 2024.

What factors contributed to Smart Eye’s gross margin in Q1 2024?

Smart Eye's gross margin of 90% in Q1 2024 was due to a higher share of software sales.

What are some of Smart Eye's significant order wins in Q1 2024?

In Q1 2024, Smart Eye secured 19 design wins for DMS, 5 for Interior Sensing, and 2 for AIS, with an estimated total order value of SEK 785 million.

What was the impact of restructuring costs on Smart Eye's Q1 2024 results?

Restructuring costs negatively impacted Smart Eye's Q1 2024 EBITDA by SEK 11.6 million.