Tobii (TOBII) Q3 2024 earnings summary

Executive summary

• Net sales grew 40% year-over-year in Q3 2024, driven by acquisitions and integration, while organic growth was -6%.

• EBIT improved to SEK -17 million from SEK -69 million, reflecting cost reductions and integration synergies.

• Gross margin increased to 80% from 75% due to a favorable product mix.

• Over 550,000 vehicles on the road use company technologies, with strong progress in automotive OEM programs.

• Acquisition synergies are being realized, and OEM programs are advancing toward production.

Financial highlights

• Q3 2024 net sales: SEK 262 million (up 40% year-over-year); organic growth -6%.

• Q3 EBIT: SEK -17 million (improved from SEK -69 million); EBIT margin -8% (from -46%).

• Q3 gross margin: 80% (up from 75%).

• Free cash flow in Q3: SEK -96 million (improving from SEK -121 million in Q2).

• Cash and cash equivalents at period end: SEK 138 million; unutilized SEK 50 million revolving credit facility.

Outlook and guidance

• Cost reduction program targets more than SEK 200 million in annualized savings versus Q2 2024 baseline.

• Further EBIT improvement and positive profitability trend expected for full year 2024.

• Additional one-off costs expected in Q4 as further cost actions are implemented.

• Integration segment revenue from the acquisition is expected to decline in 2025, but positive EBIT is anticipated to continue.

• Entering 2025 with a lower cost base and continued focus on operational efficiency.