Xplora Technologies (XPLRA) ABGSC Investor Days summary

Company overview and current operations

• Leading provider of kids' smartwatches in Europe and the U.S., with 1.5 million units sold and NOK 650 million+ in revenue across nine markets.

• Business model centers on high-margin SIM cards with recurring revenue, targeting children aged 4–11 as their first mobile device.

• Intellectual property includes an IoT platform, ten smartwatch generations, global MVNO setup, and premium value-added services.

• Monetization through hardware sales (30%+ margin), recurring SIM subscriptions (80%+ margin), and B2B revenue sharing with telcos.

Financial performance and key metrics

• Achieved record Q3 revenue of NOK 257 million, up 35% year-over-year, with NOK 30 million EBITDA for the quarter.

• Ended Q3 with NOK 177 million in cash and steady positive cash flow; CapEx remains low at NOK 7 million for Q3.

• Device sales generated NOK 182 million in Q3, mainly from the Nordics and Germany, with NOK 63 million gross profit.

• Service revenue reached NOK 75 million in Q3, also with NOK 63 million gross profit, driven by high-margin subscriptions, especially in Norway.

Strategic growth initiatives and future ambitions

• Targeting 1 million subscriptions within 4–5 years, expanding into youth (10–15) and senior segments.

• Strategic partnership with HMD to launch youth-focused smartwatches, with new products debuting at Mobile World Congress in March 2025.

• Announced acquisition of Doro to enter the senior market, aiming to pre-install and activate SIM cards in Doro’s 1.5 million annual smartphone sales.

• Combined revenue of NOK 1.6 billion and EBITDA of NOK 150 million+ projected post-acquisition, with significant EBITDA upside from increased SIM activation rates.