Shelly Group (SLYG) CMD 2024 summary

Strategic direction and market positioning

• Focus on expanding local teams and decentralized sales in key European markets (U.K., Italy, Spain, France, Benelux) and high-growth regions like the US to drive growth and provide local support.

• Targeting both do-it-yourself and professional installer segments, with a shift toward increasing professional market share, especially in the Nordics and through partnerships with major distributors.

• Emphasis on product ecosystem breadth, open protocols, and integration with leading platforms (Alexa, Google, Matter), supporting both consumer and industrial applications.

• Expansion into new verticals such as smart locks, intelligent sensors, cameras, and SaaS services, including Fleet Manager and access control, to diversify revenue streams.

• Strategic pricing remains mid-market, balancing affordability, quality, and compliance, leveraging European development and cloud infrastructure for GDPR compliance.

Product innovation and technology roadmap

• Over 60 device types offered, with a vertically integrated ecosystem, 100% in-house hardware/software, supporting 12+ protocols and open APIs.

• Proprietary cloud infrastructure and the Shelly Cloud/Data Lake enable advanced features, real-time monitoring, and data monetization.

• Gen 4 devices (planned for 2025/2026) will integrate multiple protocols (Wi-Fi, Bluetooth, Zigbee, LoRa, Z-Wave, Matter) in a single device, targeting home and industrial markets.

• Launch of Shelly X, a B2B module for appliance manufacturers, enabling OEMs to embed Shelly technology and cloud services, with first products expected by end of 2024.

• Community-driven development and viral marketing have resulted in rapid adoption, with over 15 million devices sold, 3 million households, and 1 million social media reach.

Financial performance and guidance

• H1 2024 sales reached €42m (+49% YoY), with a 55% gross margin, 26% EBIT margin, and 22% net margin.

• Revenue guidance set at €105 million for 2024, with a target of €200 million by 2026, implying a CAGR of 38%-40% from 2023.

• EBIT expected to rise from €26m in 2024E to €50m in 2026E, with a focus on reinvesting in R&D and local teams.

• Asset-light model, strong cash generation (cash ratio ~5.1x), and 90% equity ratio support organic growth, M&A, and shareholder returns.

• Recent acquisitions (LOQED, Qubino) expand the product portfolio and market reach, with integration expected to drive additional revenue from 2025.