SaverOne Reports Full Year 2023 Results with 128% Year-over-Year Revenue Growth
- SaverOne achieved strong revenue growth in 2023, reaching NIS 2.7 million.
- The company signed a strategic OEM agreement with Volvo Bus in Mexico.
- SaverOne experienced a 128% year-over-year growth in revenue in 2023.
- The gross profit for 2023 was NIS 0.752 million, showcasing financial improvement.
- Successful international contract wins and expansion of business activities were highlighted in the report.
- The net loss in 2023 was NIS 33.8 million, indicating higher expenses impacting profitability.
- Cash and cash equivalents decreased from NIS 19.2 million in 2022 to NIS 17.1 million in 2023.
- Although revenue grew, the net loss increased, posing financial challenges for the company.
Insights
The reported revenue growth of approximately 128% for SaverOne, a company specializing in ADAS technologies, is a strong indicator of the company's growing market presence. The expansion into international markets and securing new contracts, such as the OEM agreement with Volvo Bus Corporation in Mexico, is a positive signal for potential investors. However, the increased net loss of NIS 33.8 million in 2023, compared to NIS 25.0 million in 2022, reflects higher expenses associated with these growth efforts. The cash position at the end of the year, NIS 17.1 million, while lower than the previous year, still provides some runway for continued operations and investment in growth.
Investors should consider the scalability of SaverOne's business model and the recurring revenue potential from the growing installed base of systems. The strategic importance of patents, such as the newly granted US patent, should not be overlooked as they can provide competitive advantages and barriers to entry for competitors. Nonetheless, the current financials suggest that the company is in an investment phase and profitability is not yet realized, which is not uncommon for growth-stage tech companies. The long-term success will depend on the company's ability to control costs and improve margins while continuing to scale.
The ADAS market is experiencing significant growth, driven by increasing awareness of road safety and regulatory mandates for vehicle safety systems. SaverOne's land-and-expand strategy, which involves broadening initial penetrations locally to full fleets and securing new international contracts, aligns well with this market trend. The company's focus on specific verticals, such as the private bus fleet industry and strategic partnerships, like the distribution agreement with GVZ Company, are likely to enhance its market penetration.
It is essential to note that the ADAS industry is highly competitive, with larger players potentially overshadowing smaller companies like SaverOne. The company's ability to secure deals with notable clients, such as Cemex and Volvo, provides validation of its technology and opens doors for further international expansion. The strategic pilots in North America and Europe are important steps in proving the technology's efficacy and reliability in diverse markets. The growth potential in the sector is substantial, but SaverOne's ability to convert pilots into long-term contracts will be a critical factor in their sustained success and impact on the stock market.
SaverOne's progress in the ADAS sector is notable, particularly its OEM agreement with Volvo Bus Corporation and the expansion of its solutions into Cemex's fleet in Spain. These developments indicate the company's ability to meet the stringent requirements of OEMs and large-scale fleet operators. The ADAS sector is becoming increasingly integral to modern transportation systems and SaverOne's focus on safety and driver assistance positions it well within this niche.
The installation of systems in fleets, such as those of Strauss Group and Egged Tours, signifies trust in SaverOne's technology and the value proposition it offers to corporate clients. The recent patent grant in the US adds intellectual property value and could be a significant asset in negotiating future deals or defending the company's market position. However, the automotive industry is subject to rapid technological changes and regulatory shifts. SaverOne's continued investment in R&D and its ability to adapt to these changes will be important for its long-term viability and attractiveness to investors.
Strong growth continued with 2023 revenue at NIS 2.7 million
PETAH TIKVAH, Israel, March 25, 2024 (GLOBE NEWSWIRE) -- SaverOne 2014 Ltd. (Nasdaq: SVRE, TASE: SVRE), a company developing and deploying transportation safety and advanced driver-assistance systems (ADAS) technologies and solutions, today presented its results for the full year 2023, and shared recent business updates.
Recent Highlights
- SaverOne is successfully executing on its land-and-expand strategy by broadening initial penetrations locally to full fleets, as well as new pilots and international contract wins;
- Signed a first OEM agreement with Volvo Bus Corporation in Mexico;
- 4,600 systems have been ordered by customers as of March 12, 2024 (of which approximately 3,200 have been installed)
Financial Highlights
- ~2.3X (
128% ) year-over-year growth in 2023 revenue to NIS 2.7 million (~$0.75 million ); - Gross profit in 2023 of NIS 0.752 million (~
$0.20 7 million), an increase of107% versus NIS 0.364 million in 2022 - Net loss of NIS 33.8 million (~
$9.3 million ) in 2023 versus NIS 25.0 million in 2022 with higher net loss due to higher expenses given increased business activities particularly in international regions; - December 31, 2023 cash and cash equivalents of NIS 17.1 million (~
$4.7 million ) compared with NIS 19.2 million at year-end 2022.
Management Comment
Commented Mr. Ori Gilboa, CEO of SaverOne, “We are pleased with continued solid performance in 2023, both from the financial perspective by growing revenues at more than
“We continue to remain optimistic and we expect to maintain our strong momentum into 2024 and beyond,” concluded Mr. Gilboa.
Recent Developments Summary
- In September 2023, SaverOne launched its first European pilot with Cemex in Spain, covering ten trucks in two regions. This follows a recent successful installation of SaverOne's solution across Cemex Israel's full fleet of employee vehicles and operational trucks.
- In October 2023, SaverOne announced the win of six new customers covering 90 vehicles in the private bus fleet industry in Israel. The private bus fleet vertical, especially buses carrying school children, is key for SaverOne, representing significant growth potential internationally and has become an area of strategic focus for the Company.
- In October 2023, SaverOne signed a distribution agreement with GVZ Company, based in Milan, specializing in the distribution of automotive components and solutions in European markets. Furthermore, SaverOne appointed Mr. Tal Yihie as its Italian Country Partner, a seasoned business development executive with over 14 years of extensive sales, marketing, and distribution expertise in Italy, in addition to having an extensive global business network.
- In November 2023, SaverOne launched a strategically important pilot project of 10 vehicles with Tecne, the engineering company of Gruppo Autostrade per l'Italia, which is one of Europe's leading concessionaries for the construction and management of toll motorways, with a fleet of 3,000 vehicles.
- In November 2023, SaverOne announced a new pilot with System Logistics, an Italian designer, manufacturer and provider of automated warehousing, with a fleet of over 100 vehicles.
- In January 2024, its was announced that the SaverOne system will be installed across Strauss Group's entire fleet of over 80 food delivery trucks in Israel. Strauss Group is one of the largest food manufacturers in Israel.
- In January 2024, it was announced that SaverOne secured a new customer, Bon Tour, a leading private transit companies in Israel, with a significant order of 300 Systems. In the coming month, 50 systems will be installed on Bon Tour's various buses and minibuses, and following that, a further 250 systems are expected to be installed. Among Bon Tour's customers are government offices, municipalities and councils, institutions and hospitals, factories, tourism bodies, as well as private customers.
- In February 2024, SaverOne announced that Egged Tours would install 300 SaverOne Systems on all its buses. Egged Tours operates the largest tour bus fleet in Israel. It is a subsidiary of Egged Transportation, Israel's largest bus company, with over 3,000 buses operating nationally with a vast network of urban and intercity routes.
- In February 2024, SaverOne was granted a new US patent covers aspects of SaverOne's System to prevent distraction while driving. With this new patent, SaverOne's patent portfolio comprises of 23 patents of which 10 are already granted in various jurisdictions and a further 13 additional patent applications in process. These patents are strategically filed in key markets such as the US, China, Israel, the United Kingdom, and the European Union, reflecting the company's strategic vision for global expansion.
- In February 2024, SaverOne announced that it has launched a new pilot project in the United States with Motor Supply, Inc., a trucking company based in Columbia, South Carolina. The pilot is expected to run over a period of 12 months and, if successful, potentially expand to the rest of the fleet and any future trucks that Motor Supply may operate.
- In March 2024, GB Tours decided to expand its installation of the SaverOne system across its full fleet of public transportation and tour buses. GB Tours is a leading Israel-based public transportation company that operates public transportation lines as well as tour buses with a fleet of about one hundred buses. This order follows the conclusion of a successful pilot of the SaverOne System on twenty of GB Tours’ buses.
- In March 2024, SaverOne entered into an original equipment manufacturer (OEM) agreement with Volvo Bus Corporation, a subsidiary of the global automotive giant, Volvo Group. Under the OEM agreement, SaverOne's Safety Solution will be installed in new Volvo buses that are manufactured for the Mexican market. Volvo Bus customers in Mexico will be offered the SaverOne Safety Solution pre-installed, following integration into Volvo’s assembly line. In addition, the agreement also allows for a retrofit of existing buses covered under Volvo’s maintenance agreement (representing approximately 3,000 buses in the market), which will install SaverOne’s Safety Solution as an aftermarket installation.
Financial Summary for 2023
Revenues increased by
Of the revenues in 2023,
Gross profit increased by
Research and development expenses, net were NIS 22.9 million (~
Selling and marketing expenses were NIS 3.8 million (~
General and administrative expenses were NIS 8.3 million (~
Operating loss was NIS 34.2 million (~
Financing income, net, was NIS 0.388 million (~
Net loss in 2023 was NIS 33.8 million (~
Cash and cash equivalents and short-term bank deposits as of December 31, 2023, amounted to NIS 17.1 million (~
The Company’s financial results are presented in accordance with IFRS as issued by the IASB.
*Unless otherwise noted, for the purposes of the presentation of financial data, all conversions from New Israeli Shekels (NIS) to U.S. dollars and from U.S. dollars to NIS were made at the rate of NIS 3.627 to
A copy of SaverOne’s annual report on Form 20-F for the year ended December 31, 2023 has been filed with the U.S. Securities and Exchange Commission at https://www.sec.gov/ and posted on SaverOne’s investor relations website at https://ir.saver.one/. SaverOne will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at saverone@ekgir.com.
About the SaverOne System
SaverOne’s system is installed in vehicles to provide a solution to the problem of driver distraction, as a result of drivers using distracting applications on the mobile phone while driving, in a way that endangers their safety and the safety of their passengers. This phenomenon is considered one of the main causes of road accidents in the world. According to the US National Highway Traffic Safety Administration, the annual cost of road accidents just in the United States, stands at about
SaverOne’s primary target markets include commercial and private vehicle fleets, including public transportation and buses, that are interested in reducing potential damages and significant cost, vehicle manufacturers that are interested in integrating safety solutions to their vehicles, and insurance and leasing companies. SaverOne initially addresses car fleets with focus on the Israeli, European and US markets, as well as other markets around the world. SaverOne believes that ultimately increased focus on monitoring and prevention of cellular distraction systems in vehicles, in particular driven by upcoming expected EU regulation, will likely have a dramatic positive impact on the demand for its systems in the future.
The Company’s strategy is to provide its technology for installation to customers in the aftermarket as well as address OEM vehicle manufacturers, to install the Company's protection technologies during the vehicle manufacturing process.
About SaverOne
SaverOne is a technology company engaged in the design, development and commercialization of OEM and aftermarket solutions and technologies, to lower the risk of, and prevent, vehicle accidents.
SaverOne’s initial line of products is a suite of solutions that saves lives by preventing car accidents resulting from distraction from the use of mobile phones while driving. SaverOne is also developing a sensor system for early location and direction detection under all visibility conditions of vulnerable road users (VRU) through their cellphone footprint.
To learn more about the company, please visit: https://saver.one/
For the corporate video, please visit: https://saver.one/media/
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements regarding SaverOne's strategic and business plans, technology, relationships, objectives and expectations for its business, growth, the impact of trends on and interest in its business, intellectual property or product and its future results, operations and financial performance and condition and may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on SaverOne's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Many factors could cause SaverOne's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to: the ability of SaverOne’s technology to substantially improve the safety of drivers; SaverOne’s planned level of revenues and capital expenditures; SaverOne’s ability to market and sell its products; SaverOne’s plans to continue to invest in research and development to develop technology for both existing and new products; SaverOne’s intention to advance its technologies and commercialization efforts; SaverOne’s intention to use local distributors in each country or region that it will conduct business to distribute our products or technology; SaverOne’s plan to seek patent, trademark and other intellectual property rights for our products and technologies in the United States and internationally, as well as its ability to maintain and protect the validity of its currently held intellectual property rights; SaverOne’s expectations regarding future changes in its cost of revenues and our operating expenses; interpretations of current laws and the passage of future laws; acceptance of SaverOne’s business model by investors; the ability to correctly identify and enter new markets; the impact of competition and new technologies; general market, political and economic conditions in the countries in which SaverOne operates; projected capital expenditures and liquidity; SaverOne’s intention to retain key employees, and our belief that we maintain good relations with all of its employees; any resurgence of the COVID-19 pandemic and its impact on SaverOne’s business and industry; security, political and economic instability in the Middle East that could harm SaverOne’s business, including due to the current war between Israel and Hamas; and other risks and uncertainties, including, but not limited to, the risks detailed in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") on March 25, 2024 and in subsequent filings with the SEC. Forward-looking statements contained in this announcement are made as of this date, and SaverOne undertakes no duty to update such information except as required under applicable law.
| International Investor Relations Contact: Ehud Helft +1 212 378 8040 saverone@ekgir.com Israeli Investors Contact: Jonathan Eilat John@theinvestor.co.il |
| As of December 31, | ||||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 17,112 | 19,240 | ||||
| Short-term bank deposits | - | 10,070 | ||||
| Trade receivables, net | 1,054 | (*) | 762 | |||
| Other current assets | 1,509 | 1,016 | ||||
| Inventory | 4,534 | 2,026 | ||||
| Total current assets | 24,209 | 33,114 | ||||
| Non-current assets | ||||||
| Trade receivables, net | 1,051 | (*) | 335 | |||
| Property and equipment, net | 248 | 218 | ||||
| Restricted deposits | 211 | 201 | ||||
| Right of usage asset, net | 1,271 | 567 | ||||
| Total non-current assets | 2,781 | 1,321 | ||||
| Total assets | 26,990 | 34,435 | ||||
| Current liabilities | ||||||
| Current maturities of leasing liability | 352 | 467 | ||||
| Trade payables | 4,303 | 1,956 | ||||
| Other current liabilities | 2,042 | 2,872 | ||||
| Liability in respect of government grants | 694 | 335 | ||||
| Derivative warrants liability | 274 | 1,151 | ||||
| Promissory notes, net | 7,139 | - | ||||
| Total current liabilities | 14,804 | 6,781 | ||||
| Non-current liabilities | ||||||
| Leasing liability, net current | 980 | 181 | ||||
| Liability in respect of government grants | 634 | 919 | ||||
| Total non-current liabilities | 1,614 | 1,100 | ||||
| Commitments | ||||||
| Shareholders' equity | ||||||
| Share capital and premium | 135,243 | 118,284 | ||||
| Capital reserve in respect of share-based payment | 10,939 | 10,045 | ||||
| Accumulated deficit | (135,610 | ) | (101,775 | ) | ||
| Total shareholders’ equity | 10,572 | 26,554 | ||||
| Total liabilities and shareholders’ equity | 26,990 | 34,435 | ||||
(*) Reclassified.
| Year Ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| Revenues | 2,720 | 1,193 | 450 | |||||
| Cost of revenues | (1,968 | ) | (829 | ) | (288 | ) | ||
| Gross profit | 752 | 364 | 162 | |||||
| Research and development expenses, net | (22,861 | ) | (21,490 | ) | (18,847 | ) | ||
| Selling and marketing expenses, net | (3,787 | ) | (1,591 | ) | (2,431 | ) | ||
| General and administrative expenses | (8,327 | ) | (6,492 | ) | (5,149 | ) | ||
| Operating loss | (34,223 | ) | (29,209 | ) | (26,265 | ) | ||
| Financing expenses | (1,219 | ) | (852 | ) | (228 | ) | ||
| Financing income | 1,607 | 5,099 | 3 | |||||
| Financing income (expenses), net | 388 | 4,247 | (225 | ) | ||||
| Loss for the year | (33,835 | ) | (24,962 | ) | (26,490 | ) | ||
| Comprehensive loss for the year | (33,835 | ) | (24,962 | ) | (26,490 | ) | ||
| Loss per share attributed to shareholders of company shares, par value NIS 0.01 each | ||||||||
| Basic and diluted loss per share: | ||||||||
| Basic and diluted loss per share | (1.08 | ) | (1.44 | ) | (3.33 | ) | ||
| Weighted average of number of shares used to calculate the basic and diluted loss per share | 31,380,359 | 17,300,596 | 7,960,239 | |||||
| Year ended December 31, | ||||||||||
| 2023 | 2022 | 2021 | ||||||||
| Cash flow from current operations | ||||||||||
| Comprehensive loss for the year | (33,835 | ) | (24,962 | ) | (26,490 | ) | ||||
| Adjustments required to present cash flows from operating activities (Appendix A) | (1,185 | ) | (3,408 | ) | 3,357 | |||||
| Net cash used in operating activities | (35,020 | ) | (28,370 | ) | (23,133 | ) | ||||
| Cash flows from investment activity | ||||||||||
| Change in deposits restricted as to withdrawal | - | - | (41 | ) | ||||||
| Changes in short-term deposits | 10,070 | (5,058 | ) | (5,012 | ) | |||||
| Purchase of property and equipment | (128 | ) | (62 | ) | (144 | ) | ||||
| Net cash provided by (used in) investment activity | 9,942 | (5,120 | ) | (5,197 | ) | |||||
| Cash flows from financing activity | ||||||||||
| Deferred offering expenses | - | - | (750 | ) | ||||||
| Net proceeds received from issuance of units including put options, first promissory note and ADSs as Commitment Shares in transaction of equity line granted | 7,170 | - | - | |||||||
| Proceeds received from issuance of ADSs resulted from partial exercise of Commitment Amount under equity line | 9,259 | - | - | |||||||
| Repayment of first promissory note (principal and interest) | (754 | ) | - | - | ||||||
| Net proceeds received from issuance of second promissory note | 3,597 | - | - | |||||||
| Receipt of government grants | - | - | 579 | |||||||
| Net proceeds received from issuance of ADSs through private placement transaction | - | 5,141 | - | |||||||
| Net proceeds received from issuance of ADSs as part of shelf prospectus through public offering transaction | 3,685 | - | - | |||||||
| Repayment of principal in respect of leasing | (467 | ) | (467 | ) | (440 | ) | ||||
| Net proceeds received from issuance of units consist of ADSs, pre-funded warrants and warrants through U.S. IPO transaction | - | 37,298 | - | |||||||
| Exercise of non-registered rights into ordinary shares | - | - | (*) | - | ||||||
| Exercise of restricted share units into ordinary shares | (*) | - | - | - | ||||||
| Net cash provided by (used in) financing activity | 22,490 | 41,972 | (611 | ) | ||||||
| Change in balance of cash and cash equivalents | (2,588 | ) | 8,482 | (28,941 | ) | |||||
| Exchange differences on cash and cash equivalents | 460 | 2,075 | - | |||||||
| Balance of cash and cash equivalents, beginning of year | 19,240 | 8,683 | 37,624 | |||||||
| Balance of cash and cash equivalents, end of year | 17,112 | 19,240 | 8,683 | |||||||
(*) Representing amount lower than NIS 1.
| Year ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| Appendix A - Adjustments required to present cash flows from operating activities | ||||||||
| Income and expenses not involving cash flows | ||||||||
| Depreciation | 98 | 82 | 61 | |||||
| Amortization of right for usage asset | 425 | 425 | 398 | |||||
| Interest expense in respect of leasing | 22 | 43 | 61 | |||||
| Share-based payment to employees and service providers | 978 | 1,157 | 3,348 | |||||
| Revaluation of derivative warrant liability | (877 | ) | (2,954 | ) | - | |||
| Recognition of discount, interest and exchange differences expenses related to promissory notes | 526 | - | - | |||||
| Finance expenses incurred from partial exercise of Commitment Amount under equity line | 531 | - | - | |||||
| Direct and incremental issuance cost allocated to derivative warrant liability through U.S IPO | - | 723 | - | |||||
| Exchange differences on cash and cash equivalent and restricted deposits | (470 | ) | (2,085 | ) | - | |||
| Changes in liability in respect of government grants | 74 | 86 | (213 | ) | ||||
| 1,307 | (2,523 | ) | 3,655 | |||||
| Changes in asset and liability items | ||||||||
| Decrease (increase) in other current assets | (493 | ) | 143 | (647 | ) | |||
| Increase in trade receivables | (1,008 | ) | (596 | ) | (142 | ) | ||
| Increase in inventory | (2,508 | ) | (1,201 | ) | (715 | ) | ||
| Increase in trade payables | 2,347 | 1,014 | 54 | |||||
| Increase (decrease) in other current liabilities | (830 | ) | (245 | ) | 1,152 | |||
| (2,492 | ) | (885 | ) | (298 | ) | |||
| (1,185 | ) | (3,408 | ) | 3,357 | ||||
| Appendix B - Non-cash investment and financing activities | ||||||||
| Recognition of right for usage asset against a leasing liability | 1,129 | - | 532 | |||||
| Deferred offering expenses not yet paid | - | - | 405 | |||||
| Direct and incremental stock-based payment expenses allocated to ADSs and pre-fund warrants through U.S. IPO | - | 960 | - | |||||
| Classification of equity amount to derivative warrants liability due to partial exercise of over-allotment option into warrants | - | 158 | - | |||||
| Repayment of first promissory note (principal and interest) through issuance of ADSs resulted from partial exercise of Commitment Amount under equity line | 3,313 | - | - | |||||
| Appendix C - Additional information pertaining to cash flows | ||||||||
| Interest paid | - | - | - | |||||
| Interest received | 271 | 85 | - | |||||
FAQ
What was SaverOne 2014 's revenue in 2023?
With which company did SaverOne sign an OEM agreement in Mexico?
What was the year-over-year revenue growth percentage for SaverOne in 2023?
What was the gross profit for SaverOne in 2023?
What was the net loss for SaverOne in 2023?
What was the cash and cash equivalents amount for SaverOne at the end of 2023?
What were some recent business updates shared by SaverOne?
In which countries did SaverOne initiate key pilot projects recently?
How many systems have been ordered by customers as of March 12, 2024?
What was the recent significant order secured by SaverOne in January 2024?
