Net Insight Ab Class B · OMXSTO:NETI_B
Net Insight Ab Class B — Q1 2025 Earnings Presentation
22 slides from Net Insight Ab Class B's earnings presentation, Apr 29, 2025
Slide 1: Q1 2025 report
Q1 2025 report Crister Fritzson, CEO Cecilia Höjgård Höök, CFO 29 April, 2025
Slide 2: Agenda
•Tillväxt i Americas men avvaktande marknad i EMEA och APAC •Växande intresse för lösningar för icke-managerade (internet- och molnbaserade) nätverk •Stärkt produktportfölj inom media, med ett flertal nya funktionslanseringar •Växande behov av GNSS-oberoende tidssynkronisering Agenda 01 HIGHLIGHTS 0
Slide 3: Highlights Q1 2025
Highlights Q1 2025 Growth in strategic focus region Americas and growing interest for unmanaged networks while our largest market, EMEA, showed more hesitation High level of activity and strong interest in our media products incl. at the NAB Show, but increased geopolitical uncertainty and business
Slide 4: Net Insight in numbers
Net insight in numbers LTM, SEKm Net sales Gross margin* Innovation** 580 71.6% 24% +4% ex. NRE 70.6% of Net sales Q1 23 - Q1 24 EBIT Earnings per share Net cash 59 0.12 156 10.2% SEK Q4 24: 233 EBIT margin * Before amortization of capitalized development expenditure ** Total development expenditure
Slide 5: Business overview
Business overview
Slide 6: Media: Existing and new customers provide solid foundation for future growth
Media: Existing and new customers provide solid foundation for future growth • Resilience to economic cycles and key demand Increasing number new customers adding to the growth foundation drivers remain; a continued transition to IP and Cloud, and a growing market for centralized and remote producti
Slide 7: Time synchronization: Increasing awareness of need for GNSS independence among governments
Time synchronization: Increasing awareness of need for GNSS independence among governments • Geopolitical uncertainty drives increased awareness of security in 5G networks and need for GNSS independence among governments • GSMA highlights the importance of seamless time synchronization - pointed to
Slide 8: Financials
Financials
Slide 9: Firm strategic focus in temporarily hesitant market
Firm strategic focus in temporarily hesitant market Compound annual growth rate of 12 percent since 2022 Temporary topline weakness impacting profitability 120 36% 700 100 30% 600 500 80 24% 400 60 18% 300 40 12% 200 20 6% 100 0 0 0%
Slide 10: Growth in Americas, lower volumes at Group level
Growth in Americas, lower volumes at Group level Product group Net sales (quarterly)*: Lower volumes Regional Net sales (quarterly): Growth in focus region Americas resulting in a high share of Support and services 120 120 100 100 80 80 60 60 40 40 20 20 0 0 * Historic product group comparison disto
Slide 11: Gross margin on a slight upward long-term trend
Gross margin on a slight upward long-term trend • Unadjusted* gross margin for the quarter at 66.2 Unadjusted* gross margin LTM close to 3-year average percent (68.3 percent in Q1 24) while unadjusted gross margin LTM was close to 3-year average, at 71.6 percent • Gross profit amounted to 57.3 SEKm
Slide 12: Focus on competitiveness in a rapidly evolving market
Focus on competitiveness in a rapidly evolving market • EBITDA of 14.5 SEKm in Q1 25, resulting in an EBITDA, capex and EBITDAC* (quarterly) EBITDA-margin of 12.6 percent (18.6 percent in Q1 24) 80 60 • The y-o-y EBITDA-margin decrease is primarily 40 attributable to the lower revenue in the quarter
Slide 13: Commitment to innovation and technological advancement
Commitment to innovation and technological advancement • Underscoring the company’s commitment to Focus on long-term value creation innovation and technological advancement, 24.5 percent of Net sales has been invested in R&D over the past twelve months 180 50% • A substantial share of the developmen
Slide 14: Decisive cost actions to enhance resilience
Decisive cost actions to enhance resilience • Topline weakness temporarily impacting EBIT (Q1 25, y-o-y): Topline weakness impacting profitability profitability with a negative gross profit effect of 28.2 SEKm • Cost control with opex levels at the same level as last year, total impact of 0.2 SEKm •
Slide 15: Net cash decrease but continued robust financial position
Net cash decrease but continued robust financial position • Cash flow from operating activities at -38.6 SEKm, Cashflow: Short-term impact by higher WC requirements attributable to the lower result and an increase in working capital requirements, negatively affected by extended payment terms for a n
Slide 16: Trade tariffs update
Trade tariffs update • Net Insight’s products are currently exempt from the U.S. tariffs introduced in April and subject to tariffs according to previously established rates • Should the situation change, and the company become subject to additional tariffs, profitability could be impacted due to ri
Slide 17: Outlook
Outlook
Slide 18: Continued progress on strategic initiatives
Continued progress on strategic initiatives
Slide 19: Firm focus on strategic initiatives to drive future growth
Firm focus on strategic initiatives to drive future growth Short-term market hesitation resulting in temporary topline pressure. Timing of individual deals harder to predict, but underlying activity remains high, with a good number of tangible business negotiations taking place Temporary decline in
Slide 20: Q&A
Q&A
Slide 21: Contact Calendar
Contact Calendar 14 May 2025 Investor relations Annual General Meeting at 10:00 CEST, Smidesvägen 7, Solna, Stockholm Linda Lyth ir@netinsight.net 18 July 2025 Q2 2025 interim report will be published at 07.30 CEST 6 November 2025 Q3 2025 interim report will be published at 07.30 CET 11 February 202
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