VEF (VEFL SDB) Q3 2024 earnings summary

Executive summary

• NAV increased 9% quarter-on-quarter to USD 475 million in 3Q24, up 24% from 2022 lows, driven by robust portfolio performance, favorable market and FX conditions.

• Over 90% of the portfolio is breakeven or profitable, with growth focus returning as capital flows resume in the venture ecosystem.

• Key holdings Creditas, Konfio, and Juspay reignited growth, with recent funding rounds validating portfolio valuations.

• Capital is flowing back into fintech and emerging markets, with several portfolio companies raising capital at or above NAV marks.

• Exit markets, especially in India, are showing signs of life, supporting future realizations.

Financial highlights

• NAV per share rose to USD 0.46 (SEK 4.61) from USD 0.42 (SEK 4.26) at year-end 2023.

• Net result for 3Q24 was USD 38.2 million (3Q23: -56.5 million); EPS USD 0.04 (3Q23: -0.05).

• Net result for 9M24 was USD 32.3 million (9M23: 40.7 million); EPS USD 0.03 (9M23: 0.04).

• Cash and liquidity investments at end-3Q24 totaled USD 13.2 million.

• Portfolio weighted revenue growth outlook for next 12 months is 40%, with gross profit growth at 60%.

Outlook and guidance

• Management expects continued NAV compounding and portfolio revenue growth of ~40% and gross profit growth of ~60% over the next 12 months.

• Focus remains on strengthening the balance sheet, delivering portfolio exits in 2024/25, and narrowing the traded discount to NAV.

• Top portfolio companies expected to maintain profitability while accelerating growth.

• Several partial exits are targeted for 2024-25, with no pressure to exit top positions at unfavorable prices.

• Anticipates more capital raises and a gradual reopening of the venture ecosystem.