Tobii (TOBII) Q2 2024 earnings summary

Executive summary

• Net sales grew 8% year-over-year in Q2 2024, driven by the FotoNation/AutoSense acquisition, while organic growth declined 16% due to weak Products & Solutions and a strong Q2 2023 comparison.

• Comprehensive cost reduction measures were initiated, targeting SEK 200 million in operational expense savings over the next four quarters.

• Integration of FotoNation/AutoSense is progressing, with new DMS and OMS design wins and a unified product roadmap.

• Three new software products were launched, strengthening the product portfolio and expanding market reach.

• Operating loss (EBIT) was SEK -66 million, including SEK 10 million in one-off redundancy costs; adjusted EBIT was SEK -56 million.

Financial highlights

• Q2 2024 net sales: SEK 201 million (up 8% year-over-year); organic growth -16%.

• Gross margin improved to 79% from 77% last year, driven by product mix.

• EBIT was SEK -66 million; adjusted EBIT was SEK -56 million, excluding SEK 10 million in one-off costs.

• Free cash flow was SEK -125 million in Q2 and SEK -251 million year-to-date.

• Cash and cash equivalents at period end: SEK 244 million, with SEK 267 million raised via rights issue.

Outlook and guidance

• Cost reduction program aims to lower operational expenses by SEK 200 million over the next four quarters.

• Management targets significant EBIT improvement in 2024, positive free cash flow, and 10% EBIT margin for 2026, and 20% EBIT margin for 2028.

• Integration and Products and Solutions segments expected to reach profitability in the near term; AutoSense remains in investment phase.

• No annual dividends planned as cash flows will be reinvested in growth initiatives.