Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tobii AB (TBIIF, Financial) reported its best ever Q1 result with its first positive EBIT in Q1 2025.
- The company achieved a significant improvement in cash flow compared to the same period last year.
- All business segments contributed to improved performance, with the products and solutions segment delivering an EBIT of 12 million SEK.
- The integration business segment showed a 4th straight profitable result, with net sales growing by 87%.
- The AutoSense business segment showed notable improvement with a reduced negative EBIT, indicating progress in its investment phase.
Negative Points
- The products and solutions segment experienced an organic net sales decline of 8%, impacted by weak demand in certain regions.
- The gross margin for the products and solutions segment decreased from 64% to 62% due to mix and volume.
- The AutoSense business segment still operates at a loss, with a negative EBIT of 24 million SEK.
- There are macro uncertainties, including changes in academic funding in the US, impacting certain business areas.
- The company is still in the process of cost reductions, indicating ongoing financial challenges.
Q & A Highlights
Q: Can you elaborate on the expected strengthened cash position in the second quarter?
A: CEO Anand Srivaza explained that the strengthened cash position is driven by ongoing cost reductions and strategic reviews, including divestments of non-core patents. Additionally, Tobii is in discussions with significant customers for advance payments or early purchases to address near-term liabilities in the second half of 2025.
Q: Can you break down the 29 million of other operating income and expenses?
A: CFO Magdalena Anderson clarified that 15 million of the 29 million is from the sale of non-core IP. The rest includes foreign exchange impacts and a reclassification of 6 million from costs to other income due to technicalities.
Q: Did you incur any restructuring costs, and under which line item?
A: CFO Magdalena Anderson noted that there were minor restructuring costs in Q1, amounting to a couple of million SEK, related to personnel reductions. These costs could appear under various line items.
Q: Regarding AutoSense, is it correct that you need to triple quarterly volumes to break even, and when will the single camera DMS OMS solution be ready?
A: CEO Anand Srivaza stated that while AutoSense revenue includes both license and non-recurring engineering revenues, the single camera DMS OMS solution is expected to enter production in the second half of the year. This will help build momentum and potentially lead to additional business wins.
Q: Why didn't you expand the financing revolver to at least 100 million to secure financial stability?
A: CFO Magdalena Anderson mentioned that Tobii is satisfied with the current revolving credit facility and its banking partnership. However, the company is exploring all options to strengthen its financial capabilities, including potential financing expansions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
