VNV Global (VNV) Q3 2024 earnings summary

Executive summary

• NAV declined 4% in USD to $575 million in Q3 2024, mainly due to a markdown of BlaBlaCar linked to French political uncertainty affecting energy savings certificate revenue, and was down 13.77% YTD from year-end 2023.

• Portfolio activity increased, with several companies raising funds at or above previous valuations, and asset sales totaling nearly $150 million, primarily used to pay down debt.

• Upon closing the Gett sale, the company expects to move into a positive net cash position, enabling future investments.

• Three-quarters of the portfolio is EBITDA positive, reflecting improved operational resilience.

• The investment team is experienced, with a history of successful exits and a stage-agnostic approach, investing from seed to late-stage growth.

Financial highlights

• Q3 2024 NAV was USD 575m (SEK 5,804m), or USD 4.39 (SEK 44.32) per share, down 4.3% in USD and 8.8% in SEK from the previous quarter, and down 13.77% YTD in USD.

• Investments in financial assets totaled $650 million, with cash and equivalents at $11.9 million at quarter-end, and total portfolio value at $662 million.

• BlaBlaCar valuation dropped 12% in the quarter and 17% YTD, now representing 40% of NAV.

• Gett and Voi valuations remained flat in Q3 but fell YTD; together with BlaBlaCar, they comprise nearly 70% of NAV.

• Post-quarter, an additional $10 million in cash was added from smaller asset exits.

Outlook and guidance

• Signs of recovery in the tech investment market, with more portfolio companies able to raise capital at favorable valuations.

• Expectation for Gett transaction to close in the second half of 2024, leading to a positive net cash position.

• Voi anticipated to achieve full-year EBIT profitability in 2025, supported by new bond funding.

• BlaBlaCar's energy savings certificate revenue expected to return in 2025 at a lower level than 2023, with modeled discounts for uncertainty.

• Management anticipates resolving regulatory and policy uncertainties affecting key holdings in the near term.