Net Insight Ab Class B · OMXSTO:NETI_B
Net Insight Ab Class B — Q4 2024 Earnings Presentation
20 slides from Net Insight Ab Class B's earnings presentation, Feb 19, 2025
Slide 1: Q4 2024 report
Q4 2024 report Crister Fritzson, CEO Cecilia Höjgård Höök, CFO 19 February, 2025
Slide 2: Agenda
Agenda 01 HIGHLIGHTS 02 BUSINESS OVERVIEW - Media - Time Synchronization 03 FINANCIALS 04 OUTLOOK
Slide 3: Important customer additions strengthen market position
Important customer additions strengthen market position HIGHLIGHTS Q4 2024 FINANCIAL SUMMARY • A seasonally more volatile Q4 concludes a record NET SALES FY 2024 net sales growth of +13.4% excl. NRE year - with strong growth in region Americas and a 133.5 despite a weaker Q4. In Q4, net sales of med
Slide 4: Business overview
Business overview
Slide 5: Delivering on customer needs and building for future growth
Delivering on customer needs and building for future growth STRATEGIC FOCUS RESULTING IN SOLID SALES GROWTH POSITIVE PROFITABILITY TREND DESPITE GROWTH INVESTMENTS MSEK MSEK Net sales rolling 12m Operating earnings rolling 12m 120 Operating margin rolling 12m 36% +8.7% 700 +17.7% 100 30% 600 +24.8%
Slide 6: Strong prospects for leveraging a global customer base
Strong prospects for leveraging a global customer base REGIONAL NET SALES SPLIT PRODUCT GROUP NET SALES SPLIT Net Sales split Q4 24 Net Sales split Q4 24 Net Sales split rolling 12m Net Sales split rolling 12m
Slide 7: Media: New important customers
Media: New important customers • Firmly focused on streaming of live events, such as the rapidly growing sports segment • Recent years’ investments in functionality upgrades for IP products and the launch of cloud products have strengthened our market position • Growth in 2024 driven by upselling to
Slide 8: Increasing growth contribution from Zyntai
Increasing growth contribution from Zyntai • Continued increasing interest in Zyntai. Several leading telecom operators initiating Proof of Concepts (PoCs) • New orders in the quarter include an order from a leading European operator and our first Zyntai sale to a Time-as-a-Service (TaaS) provider i
Slide 9: Financials
Financials
Slide 10: Strong year despite softened sales dynamics in Q4
Strong year despite softened sales dynamics in Q4 Q4: FEW ORDERS RELATED TO CUSTOMERS’ TEMPORARILY HIGHER SHARE OF SUPPORT REMAINING BUDGET CAPACITY AND SERVICES DUE TO LOWER TOTAL NET SALES* MSEK MSEK EMEA Americas Hardware 200 200 Software licenses APAC 176 Support and Services 176 180 162 180 162
Slide 11: Gross margin on a slightly upward long-term trend
Gross margin on a slightly upward long-term trend GROSS MARGIN (ROLLING 12 MONTHS)* • Gross earnings amounted to 81.5 MSEK, with y-o-y MSEK, decrease primarily driven by lower net sales 480 Gross earnings 80% Gross margin • Gross margin of 71.9% before amortization of 3yr average (71.5%) capitalized
Slide 12: EBITDA-margin of a continued upward trajectory
EBITDA-margin of a continued upward trajectory EBITDA MARGIN ON A POSITIVE LONG-TERM TRAJECTORY LONG TERM VALUE CREATION MSEK MSEK 200 Rolling 12m 55% Rolling 12m EBITDA EBITDA-margin Development expenses 178 51% 180 50% 180 EBITDAC* 170 Capitalization of development expenditure 160 47% Innovation*
Slide 13: Topline weakness temporarily impacting profitability
Topline weakness temporarily impacting profitability • Operating earnings in the quarter amounted to 5.2 OPERATING EARNINGS DEVELOPMENT MSEK, with the y-o-y decrease mainly related to MSEK lower net sales 29.4 • Operating margin decreased to 3.9%, alongside continued investments in the organization
Slide 14: Solid financial flexibility to seize opportunities
Solid financial flexibility to seize opportunities • Cash flow from operating activities at 35.6 MSEK, CASH FLOW DEVELOPMENT attributable to the lower result and partially offset by MSEK 5 7 reduced working capital 23 5 -4 240 1 • Cash flow from investment activities of -28.7 MSEK as -29 232 a resul
Slide 15: Outlook
Outlook
Slide 16: Key strategic initiatives
Key strategic initiatives ROADMAP TO LONG-TERM FINANCIAL TARGETS Increase operational Media Time Group scalability Synchronization Expand into adjacent Grow the technologies/ markets Average annual organic share of net sales growth of recurring Expand Broadened market revenue 15% Expand market share
Slide 17: Product development paves the way for an exciting 2025
Product development paves the way for an exciting 2025 A successful 2024 and full year net sales growth of 13.4%*, driven by region Americas with a stable EMEA market Operating margin FY 2024 stable at 13.0% with a continued high pace of innovation for future growth Strengthened media market positio
Slide 18: Q&A
Q&A
Slide 19: Contact Calendar
Contact Calendar Investor relations 22 April 2025 Annual report will be published Linda Lyth 29 April 2025 ir@netinsight.net Q1 2024 will be published at 07.30 CEST 14 May 2025 Annual General Meeting at 10:00 CEST, Smidesvägen 7, Solna, Stockholm 18 July 2025 Q2 2025 will be published at 07.30 CEST
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