Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tobii AB (TBIIF, Financial) achieved its best-ever EBIT of SEK50 million in Q4 2024, indicating strong profitability.
- The company successfully integrated the autosense business, enhancing its roadmap and realizing synergies.
- Products and solutions, as well as integration businesses, delivered profitable results in Q4 2024.
- Gross margin improved significantly to 84% in Q4 2024, up from 74% the previous year.
- Tobii AB (TBIIF) continues to strengthen its position in the autosense market, with ambitions to become a leader.
Negative Points
- Organic growth declined by 22% in Q4 2024, indicating underlying challenges in the business.
- The autosense business reported a loss of SEK54 million in Q4 2024, including one-off costs.
- The company is still in an investment phase for the autosense segment, which will continue to impact profitability.
- There is an expected decline in revenue from the integration segment as the acquired business matures.
- Tobii AB (TBIIF) faces potential impacts from increased tariffs, which could affect its operations.
Q & A Highlights
Q: Can you tell us more about XR and the smart glasses potential?
A: Anand Srivatsa, CEO: The XR market is evolving from VR to smart glasses as a stepping stone to full augmented reality. Companies like Meta and Xreal are advancing in this area. We believe smart glasses are a promising technology, with eye tracking being crucial for leveraging AI in these devices.
Q: What is the current free cash flow run rate entering 2025, and how much cash will be needed for the COVID tax grant repayment and cost reductions?
A: Magdalena Andersson, CFO: Our goal is positive free cash flow by 2026. In Q4 2024, our cash flow was minus SEK14 million. We are focusing on cash management, cost reductions, and strategic divestments to strengthen our cash position.
Q: How should we view the ASP development in Autosense given the strong customer base?
A: Anand Srivatsa, CEO: Autosense revenue in Q4 was SEK23 million, mainly from non-recurring engineering expenses. We expect revenue to shift towards licenses in 2025 and 2026 as systems enter production, leading to sustainable long-term growth.
Q: Will Tobii need extra cash until it becomes cash flow positive?
A: Anand Srivatsa, CEO: We are focused on managing cash through cost reductions and potential divestments. We believe these measures will help fund our organic business plan, but we remain cautious due to market uncertainties.
Q: Does the recent announcement of tariffs impact Tobii?
A: Anand Srivatsa, CEO: Tariffs have impacted us, particularly in the US market for gaming and research. We are assessing the effects of increased tariffs in China and will provide more details in future quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
