Smartoptics Group Asa · OSL:SMOP
Smartoptics Group Asa — Q3 2024 Earnings Presentation
16 slides from Smartoptics Group Asa's earnings presentation, Oct 23, 2024
Slide 1: Financial Presentation Q3 2024
Financial Presentation Q3 2024 October 23, 2024
Slide 2: Q3'24 Signs of improvements in challenging market, and new strategic account
Q3’24 Signs of improvements in challenging market, and new strategic account REVENUE 2024 Change Entered into new partnership proving the large Q3 13.0 MUSD -4.5% account strategy 9M 38.6 MUSD -13.5% Flat revenue Q3 over Q2 2024, positive sign GROSS MARGIN given the normal seasonality. Still expecti
Slide 3: Drivers for revenue growth acceleration
Drivers for revenue growth acceleration Progress on Very high activity New product AI demands large account level in all release well additional growth strategy regions received in the driver market • WIN Technology partnership • Improvements in EMEA • 2024 product releases • Expected to drive follo
Slide 4: Long-term partnership with major US regional operator WIN Technology
Long-term partnership with major US regional operator WIN Technology • Partnership enabled by Smartoptics’ recent product launches and market efforts towards large- and medium sized US operators Smartoptics expect significant deliveries • Cost efficiently supporting WIN Technology’s rapid growth in
Slide 5: Vast growth opportunity in regional US networks
Vast growth opportunity in regional US networks Partnership with WIN Technology validates Smartoptics’ attractiveness in this segment INDATEL network covering significant parts of the US • Present in more than 1100 Nationwide point-of-presence and operating more than 640,000 km of fiber networks • V
Slide 6: Leverage strong technical position to target growth potential in Devices
Leverage strong technical position to target growth potential in Devices • Build on 15+ years of development of production environment and customer facing coding solutions (HW and SW) • Increased focus on strategic procurement and technology Optimizing product qualification through more investments
Slide 7: Q3'24 deep dive
smartoptics Q3’24 deep dive
Slide 8: Strong quarter in EMEA demonstrating market comeback and continued positive development in APAC
Strong quarter in EMEA demonstrating market comeback and continued positive development in APAC Revenue per region and quarter – Last 5 quarters MUSD Americas EMEA APAC -15% 7.5 6.8 6.9 +3% 6.4 6.0 6.2 5.7 5.5 5.3 4.6 +27% 1.5 0.9 1.0 1.1 0.7 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2024 20
Slide 9: Revenue still affected by soft market conditions and lack of larger projects
Revenue still affected by soft market conditions and lack of larger projects Revenue per business area and quarter – Last 5 quarters MUSD Solutions Devices Software & Services -7% 8.4 7.8 7.4 7.3 6.5 -14% 4.3 4.0 3.8 3.6 3.7 +36% 2.1 2.0 1.8 1.8 1.5 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023
Slide 10: Strong financial position
Strong financial position Balance sheet Sep 30, 2024 Working capital development past 5 quarters MUSD MUSD 47.3 47.3 16.5 17.3 7.7 16.0 14.9 13.3 17.0 17.9 17.2 17.3 27.9 15.4 15.9 15.6 15.4 15.5 14.6 15.6 14.6 14.7 13.0 14.2 14.1 13.5 13.0 14.0 11.5 30.6 Q3 Q4 Q1 Q2 Q3 1.2 Inventories Trade Receiva
Slide 11: Summary of Q3 financial performance
Summary of Q3 financial performance Revenue EBITDA & EBIT Operating cash flow MUSD MUSD MUSD -4.5% EBITDA EBIT 5.5 5,6 2.7 2.2 2.3 1.8 2.3 2.5 13.6 13.8 12.6 13,0 13,0 1.1 1,0 1,1 0.5 0,5 0,5 -1,9 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Gross margin and EBITDA margin Key takeaways % 50,0 % 50,5
Slide 12: Long-term ambitions stay firm
Long-term ambitions stay firm 2024 Q3 LTM 2025/2026 RESULTS RESULTS ASPIRATIONS REVENUE 13.0 MUSD 52.5 MUSD ~100 MUSD GROSS MARGIN 47.4% 48.5% ~45% EBITDA MARGIN 8.3% 10.4% ~17-20% EBIT MARGIN 3.8% 6.3% ~13-16% 12
Slide 13: Profit and Loss Statement
Profit and Loss Statement Profit and Loss Statement Q3 2024 Comments 2024 2023 2024 2023 Amounts in USD 1 000 Q3 Q3 YTD YTD Total revenue and other operating income 12 994 13 603 38 634 44 673 Direct cost of sales -6 835 -6 805 -20 183 -22 381 Employee benefit expenses -3 772 -3 188 -11 909 -10 578
Slide 14: Cash Flow Statement
Cash Flow Statement Cash Flow Statement Q3 2024 Comments 2024 2023 2024 2023 Amounts in USD 1 000 Q3 Q3 YTD YTD Cash flows from operating activities Profit/(loss) before income tax 738 1 499 2 414 7 721 Adjustments for 0 Taxes paid 0 -67 0 -240 Depreciation and amortization 575 484 1 677 1 356 Inter
Slide 15: Balance Sheet
Balance Sheet Balance Sheet Sep 30, 2024 2024 2023 2024 2023 Amounts in USD 1 000 Amounts in USD 1 000 Q3 Q3 Q3 Q3 Intangible assets 1 607 1 082 Share capital 187 181 Property, plant and equipment 3 534 2 560 Share premium 14 182 11 879 Right of use assets 1 500 1 973 Other paid in capital - 141 Non
Slide 16: Thank you
smartoptics Thank you