Tobii AB: Interim report second quarter 2024: Key focus on cost reduction and Autosense integration
Net sales increased by 8% to SEK 201 million (185), with an organic growth of -16%.
Gross margin was 79% (77%).
Operating result (EBIT) was SEK -66 million (-48). Adjusted for structural redundancy-related one-off costs of SEK 10 million, EBIT was SEK -56 million.
Profit/loss for the quarter amounted to SEK -73 million (-38).
Earnings per share amounted to SEK -0.31 (-0.36).
Free cash flow amounted to SEK -125 million (-67).
Net sales increased by 3% to SEK 362 million (353), with an organic growth of -12%.
Gross margin was 77% (75%).
Operating result (EBIT) was SEK -140 million (-101). Adjusted for structural one-off costs of SEK 10 million, EBIT was SEK -130 million.
Profit/loss for the period amounted to SEK -162 million (-95).
Earnings per share amounted to SEK -0.99 (-0.91).
Free cash flow amounted to SEK -251 million (-22).
A rights issue was successfully completed, and Tobii received total net proceeds of SEK 267 million.
One new Autosense DMS design win for commercial vehicles and one expansion of existing OMS design win to a new OEM.
An expanded cost reduction program was initiated, projected to reduce cash-related operational expenses by approximately SEK 200 million over the next four quarters.
CEO Anand Srivatsa comments:
"We entered this quarter as a substantially larger organization given our acquisition of FotoNation/AutoSense. We have also been dealing with weaker demand in other parts of our business. Given this reality, our immediate focus has been to significantly reduce our costs to operate within the available cash resources. Therefore, we are executing an expanded cost reduction program. These measures involve focusing our product portfolio and refining our organizational structure, which enables us to reduce our overall staffing and operational expenses. We have also started to realize cost synergies from the integration of Autosense, and this process will continue through the rest of 2024 and 2025. The current cost measures are projected to reduce cash-related operational expenses by approximately SEK 200 million over the next four quarters, compared to the baseline of the second quarter of 2024.
The expected net sales from the acquisition have materialized as anticipated in the second quarter, resulting in an overall growth of 8 percent. The organic business, excluding the acquisition, faced another challenging quarter, with net sales declining by 16 percent. EBIT for the quarter was SEK -66 million, which includes a one-off charge of SEK 10 million related to the cost reduction program.
Products & Solutions experienced an organic decline of 15 percent, driven primarily by ongoing softness in the Asian market. The segment's development should also be viewed in the context of the exceptionally strong corresponding quarter in 2023, which saw 31 percent growth. As anticipated, the Integrations segment continues to experience quarterly variations. The quarter showed an organic decline of 16 percent, following a solid performance in the previous quarter. Including the impact of the acquisition, Integration's net sales increased by 52 percent. The segment delivered a positive EBIT result in the quarter, which we anticipate will continue going forward. Customer engagements in the XR space continued to be high this quarter, which is encouraging. The Autosense segment delivered net sales as expected and we now have our interior sensing technology integrated into more than 500,000 vehicles on the road.
Looking ahead, it is fundamental that we continue to successfully integrate our expanded Autosense business and realize our potential as a top player in the automotive interior sensing space. I'm pleased with the progress we made in the quarter and optimistic about realizing the cost and technology synergies that were pivotal in driving the acquisition. With the comprehensive cost reduction measures implemented across Tobii, we are confident in delivering a significant EBIT improvement in 2024."
Q2 presentation today at 9.00 a.m. CEST
Tobii's CEO Anand Srivatsa and CFO Magdalena Rodell Andersson will present and comment on the report. After the presentation, there will be time for questions. The presentation will be held in English.
Link to the webcast (https://ir.financialhearings.com/tobii-q2-report-2024)
Please make sure you are connected to the webcast by logging in and registering a few minutes before the presentation begins. It will be possible to ask questions via the chat function or verbally, by selecting participation options.
The presentation material will be available at Tobii's website (https://corporate.tobii.com/investors/calendar/interim-report-q2-2024). The interim report and a recording of the webcast will be available on the same page.
For more information, please contact:
Carolina Strömlid, Head of Investor Relations, Tobii AB, +46 (0)70 880 71 73, email: carolina.stromlid@tobii.com
This interim report comprises such information that Tobii AB is obligated to publish pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was published through the agency of the person set out above on July 19, 2024, at 7.30 a.m. CEST.
About Tobii
Tobii is the global leader in eye tracking and pioneer of attention computing. We are on a mission to improve the world with technology that understands human attention and intent. Creating tech for a better future, our technologies and solutions apply to areas such as behavioural studies and research, healthcare, education and training, gaming, extended reality, automotive, and many more. Tobii's eye tracking is used by thousands of enterprises, universities, and research institutes around the globe. Headquartered in Sweden, Tobii is listed on Nasdaq Stockholm (TOBII). For more information: www.tobii.com.