Maven Wireless Sweden (MAVEN) Q3 2024 earnings summary

Executive summary

• Order intake surged 170% year-over-year in Q3, reaching SEK 64.9M, with new customers in Slovenia and Azerbaijan and a major train repeater order for Norway to be delivered in 2025.

• Q3'24 saw weak revenue due to bulk deliveries, factory closures, and production delays, but gross margin remained stable at 41%.

• EBITDA for Q3 was SEK -2.8M (vs. SEK 12.8M last year), reflecting lower turnover and continued expansion costs.

• The Nimbus platform for 5G indoor coverage was launched and well received, with field tests confirming high performance.

• Expansion included a new UK subsidiary, increased sales presence in Australia, and ongoing projects in the US, UK/Ireland, Italy, France, and APAC.

Financial highlights

• Q3 net sales: SEK 35.9M (down 33% year-over-year); 9M 2024 net sales: SEK 142.9M (down 11%).

• Gross margin held at 41% in Q3'24 (vs. 40% prior year).

• Q3 EBITDA: SEK -2.8M (vs. SEK 12.8M); 9M EBITDA: SEK 10.3M (vs. SEK 27.7M).

• Q3 EBIT: SEK -4.8M (vs. SEK 11.0M); 9M EBIT: SEK 4.5M (vs. SEK 23.3M).

• Q3 cash flow from operations: SEK -3.7M (vs. SEK 12.2M); cash and cash equivalents at period end: SEK 10.4M.

Outlook and guidance

• Order book at period end was SEK 82.7M, with several deliveries postponed to Q4 and a strong pipeline from new markets.

• Sequential buildout of coverage is expected to improve cash flow.

• Public Safety product type approval in the US is planned for Q4, expected to drive new business.

• Deliveries to APAC planned for Q4, supporting future revenue growth.

• Management expects further expansion and continued strong gross margins, with new product launches and market entries supporting future growth.