Net Insight Ab Class B · OMXSTO:NETI_B
Net Insight Ab Class B — Q3 2024 Earnings Presentation
19 slides from Net Insight Ab Class B's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 report
Q3 2024 report Crister Fritzson, CEO Cecilia Höjgård Höök, CFO 7 November, 2024
Slide 2: Agenda
Agenda 01 HIGHLIGHTS 02 BUSINESS OVERVIEW - Media - Time Synchronization 03 FINANCIALS 04 OUTLOOK
Slide 3: Focus on technological leadership drives continued growth
Focus on technological leadership drives continued growth • Net sales growth of 8.3% following strong KEY FINANCIAL HIGHLIGHTS Q3 2024 performance in the Americas and a continued NET SALES focus on technological leadership 155.9 +12.1% in comparable currencies. Media MSEK 145.7 MSEK and Time Synchro
Slide 4: Business overview
Business overview
Slide 5: Strong growth and positive profitability development
Strong growth and positive profitability development STRONG ABILITY TO MEET OUR CUSTOMERS’ NEEDS AND OPERATING PROFIT IN A POSITIVE TREND FIRM STRATEGIC FOCUS RESULTING IN SOLID SALES GROWTH WHILE BUILDING FOR FUTURE GROWTH MSEK MSEK Net sales rolling 12m +22.0% Operating earnings rolling 12m 120 Op
Slide 6: An increasingly diversified geographical footprint
An increasingly diversified geographical footprint REGIONAL NET SALES SPLIT PRODUCT GROUP NET SALES SPLIT Net Sales split Q3 24 Net Sales split Q3 24 Net Sales split rolling 12m Net Sales split rolling 12m
Slide 7: Media on a continued positive trajectory
Media on a continued positive trajectory • Strengthening existing partnerships and building new relationships • Nimbra 400 recognized as the Innovation Award winner at IBC, in partnership with Verizon together with National Hockey League (NHL) • Enhanced competitiveness in Cloud through product laun
Slide 8: Strong interest from leading telecom operators
Strong interest from leading telecom operators • Continued commercialization of Zyntai, currently ~10 commercial customers • Extensive sales cycles including Proof of Concepts (PoCs), lab tests, field tests and framework agreements, and strong POC-to-contract conversion • Order pipeline ~175 MSEK wi
Slide 9: Financials
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Slide 10: Strong net sales growth in rapidly growing region Americas
Strong net sales growth in rapidly growing region Americas STRONG GROWTH DRIVEN SEQUENTIAL HARDWARE GROWTH BY FOCUS REGION AMERICAS AND SOFTWARE LICENSES DECREASE* MSEK MSEK EMEA Americas Hardware 200 200 Software licenses APAC 176 Support and Services 176 180 163 156 180 156 163 160 144 144 143 160
Slide 11: Gross margin on a slight increasing long-term trend
Gross margin on a slight increasing long-term trend • Gross profit amounted to 91.2 MSEK, +6.0% y-o-y, GROSS MARGIN DEVELOPMENT driven by increased revenues MSEK 480 Gross profit rolling 12m 66% • Gross margin of 58.5% in the quarter (59.7% in Q3 Gross margin rolling 12m 1yr average (61.7%) 23) and
Slide 12: Net sales increase drives EBITDAC improvement
Net sales increase drives EBITDAC improvement POSITIVE PROFITABILITY TRAJECTORY: EBITDAC* MARGIN LONG TERM VALUE CREATION: A LARGE PORTION OF TOTAL IMPROVING ALONG SOLID NET SALES GROWTH DEVELOPMENT EXPENDITURES ARE CAPITALIZED MSEK MSEK Rolling 12m 190 Rolling 12m 178 20% 180 Development expenses 5
Slide 13: Strengthened profitability alongside increased investments
Strengthened profitability alongside increased investments • Operating earnings amounted to 24.7 MSEK and OPERATING PROFIT DEVELOPMENT saw an increase of 26.3% year-on-year, partly MSEK driven by improved scalability and supported by currency effects 5.2 -2.6 3.6 24.7 • Operating margin increased by
Slide 14: Improved cash flow driven by results and WC reduction
Improved cash flow driven by results and WC reduction • Cash flow from operating activities at CASH FLOW DEVELOPMENT Q3 2024 50.9 MSEK and year-on-year improvement attributable to improved 22 11 results and reduced working capital 25 -3 -4 -20 240 236 • Cash flow from investment activities of -23 -3
Slide 15: Outlook
Outlook
Slide 16: On a clear path to capturing more of the value chain
On a clear path to capturing more of the value chain Net sales growth of 8.3% year-on-year, 12.1% in comparable currencies. Firm focus on high growth areas and capturing more of the value chain through offering enhancements Operating margin of 15.9%, corresponding to a 2.3pp increase as the underlyi
Slide 17: Q&A
Q&A
Slide 18: Contact Calendar
Contact Calendar Investor relations 19 February 2025 Q4 2024 will be published at 07.30 CET Linda Lyth ir@netinsight.net 22 April 2025 Annual report will be published 29 April 2025 Q1 2024 will be published at 07.30 CEST 14 May 2025 Annual General Meeting
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