Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ContextVision AB (LTS:0L8Z, Financial) executed a significant partnership agreement with the University of Washington to advance digital organ-specific ultrasound-based biomarkers.
- The company expanded its footprint in the image processing chain through ongoing fruitful collaborations with leading OEMs.
- Record number of customer meetings and extended contracts with existing accounts were achieved, indicating strong customer engagement.
- The company has a strong cash position of 70 million, providing ample room for further investments and shareholder value activities.
- Additional partnerships with the University of Waterloo and Inhase Solutions enhance the company's data quality venture, particularly in advanced liver imaging.
Negative Points
- Revenue declined by 24% compared to the previous year's record high quarter, reaching 26.3 million.
- The strengthening of the SEK against the US dollar and EUR negatively impacted revenue by 1.8%.
- Seasonality and an unfavorable ultrasound customer mix affected sales from some of the largest customers.
- Increased investments in data quality and IT led to higher costs and a negative cash flow of 3.7 million.
- The company faces short-term market uncertainty and increased volatility, particularly concerning currency fluctuations and tariffs.
Q & A Highlights
Q: Can you elaborate on the significance of the partnership with the University of Washington?
A: The partnership with the University of Washington is a major milestone for us, as it supports our journey in developing digital organ-specific ultrasound-based biomarkers. This collaboration is crucial for advancing our clinical research and enhancing data quality. - Gerald, CEO
Q: What were the main factors affecting the revenue decline in Q1 2025?
A: The revenue decline of 24% was primarily due to the strengthening of the SEK against the USD and EUR, seasonality effects, and an unfavorable ultrasound customer mix. Additionally, a sales push from a customer in Q4 2024 also impacted this quarter's sales. - Richard Halstrom, CFO
Q: How is ContextVision addressing the challenges posed by currency fluctuations?
A: We are experiencing a shift from FX tailwind to FX headwind due to the stronger Swedish krona. This has affected our EBITA by almost 4 million year-on-year. We are focusing on long-term strategies to mitigate these effects and remain optimistic about future revenue growth. - Richard Halstrom, CFO
Q: What are the future prospects for the data quality venture?
A: We are optimistic about the future of our data quality venture, especially with the onboarding of new partners like the University of Waterloo and Inhase Solutions. These collaborations will enhance our technical expertise and capabilities, particularly in advanced liver imaging. - Gerald, CEO
Q: Can you provide more details on the company's cash flow and financial position?
A: Our cash flow was negative 3.7 million due to lower revenues and increased investments in Q1. However, our cash position remains strong at 70 million, providing us with ample headroom for further investments in image and data quality, M&A explorations, and shareholder value activities like share buybacks. - Richard Halstrom, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
