Smart Eye Interim Report Q2 January - June 2024

Rhea-AI Summary

Smart Eye reported strong growth in Q2 2024, with net sales increasing 30% to SEK 89.6 million. The company saw a 31% increase in gross profit to SEK 81.0 million, maintaining a 90% gross margin. While still operating at a loss, Smart Eye reduced its EBITDA loss to SEK -23.2 million from SEK -33.0 million in the same period last year.

The company secured a significant SEK 700 million deal with major automakers for 35 car models after the quarter's end. Smart Eye's Automotive segment grew 66% in Q2, while Behavioral Research increased by 16%. The company expects to reach profitability next year and maintains a strong financial position with SEK 192.3 million in cash and credit facilities.

Positive

• Net sales increased by 30% to SEK 89.6 million in Q2 2024
• Gross profit grew by 31% to SEK 81.0 million, maintaining a 90% gross margin
• Secured a SEK 700 million deal with major automakers for 35 car models
• Automotive segment grew by 66% in Q2
• Behavioral Research segment grew by 16% in Q2
• Increased number of car models in production from 50 to 60
• Company expects to reach profitability next year

Negative

• Operating loss of SEK -64.2 million in Q2 2024
• Earnings after tax per share decreased to -1.46 from -1.94 in the previous year
• Slight increase in operating expenses due to sales-related costs and salary increases

GÖTEBORG, SE / ACCESSWIRE / August 21, 2024 / Smart Eye (STO:SEYE)(OTC PINK:SMTEF)(FRA:SE9) Continued growth in the quarter

April - June 2024

• Net sales amounted to SEK 89.6 (68.8) million, an increase of 30% compared to the corresponding period the previous year.

• Gross profit amounted to SEK 81.0 million (62.1), an increase of 31% compared to the corresponding period the previous year. Gross margin amounts to 90% (90%).

• EBITDA amounted to SEK -23.2 (-33.0) million.

• Operating loss amounted to SEK -64.2 (-70.7) million. Depreciation of the surplus value created in conjunction with the Affectiva and iMotions acquisitions amounts to SEK -29.2 (-28.8) million.

• Earnings after tax per share are -1.46 (-1.94), and after full dilution -1.46 (-1.94).

• Cash and cash equivalents totaled SEK 110.1 million at the end of June. The cash ending balance including credit facilities amounts to SEK 192.3 million.

• Strong order intake after the end of the quarter, SEK 700 million deal with Volvo Cars, Audi, Porsche, GM and a new European OEM, for 35 car models with a global Tier-1.

January - June 2024

• Net sales amounted to SEK 175.7 (133.2) million, which corresponds to an increase of 32%.

• Gross profit amounted to SEK 158.3 (116.7) million, an improvement of SEK 41.6 million compared to last year.

• Operating loss amounted to SEK -125.7 (-152.6) million. Depreciation of the surplus value created in conjunction with the Affectiva and iMotions acquisitions amounts to SEK -57.6 (-57.0) million.

• Profit/loss after financial items amounted to SEK -124.9 (-152.6) million.

• Earnings after tax per share are -2.99 (-4.26), and after full dilution -2.99 (-4.26).

Comments from the CEO

The demand for DMS and Interior Sensing is booming. Since the beginning of the year, we have been completely immersed in customer requests for our DMS and Interior Sensing products. We are just starting to see the results of these intense sales activities. An example is the orders we received after the quarter ended from Audi, Porsche, Volvo, GM and one more OEM through a global Tier-1. This is just one of the deals we have been working on, and we expect several more to be made public as we are entering this year's nomination season.

Our short and long-term revenue growth will follow our customers' ramp-up of car production, and we are focusing our efforts on securing future nominations from key customers. Additionally in Behavioral Research, adoption of advanced quantitative methods will further support the structural growth of our research products.

Automotive
Automotive grew with 66% in Q2. The non- license revenue is decreasing while the revenue from series production licenses is increasing. Especially Korea and North America had a strong growth in licenses. We are approaching the final stage of several large production programs, which means we will go more and more from project-based revenues to license revenues. This is of course positive for our overall revenue growth. However, it also means we might see a temporary dip in engineering revenue, right before the production licenses fully ramp up. We are currently delivering on multiple projects, and the delays that were so frequent during Covid are a thing of the past. The operating expenses rose slightly in Q2, mostly because of sales-related cost increases but also due to salary increases for the engineering team. We are confident that these sales-related investments are well timed and will produce a positive outcome in the near term.

Behavioral Research
The Behavioral Research business area grew with no less than 16%, picking up speed from last quarter and falling just shy of our record quarter in Q4 last year. We are increasing our market share in the research sector thanks to our comprehensive product offering, and that our strategy of long-term partnerships is proving to be successful. The business units are improving topline as well as keeping tight cost control, making the achievement even more impressive.

Final Words
With a continuous solid profitable growth in Behavioral Research, our outstanding order stock, the current car industry program ramp- up and our 192 MSEK in cash and credit facilities gives us confidence to pursue our market leadership for the future, reach profitability next year and maintain a sound financial situation. The most important KPI:s for our Automotive business are the number of car contracts secured and the speed at which these models enter production. This quarter, we successfully increased the number of car models entered into production from approximately 50 to 60, boosted our license revenue, and continued to outpace our competitors in winning new business.

As Smart Eye's leading position solidifies, we should expect more consolidation within the fragmented market for Tier 2 Interior Sensing. After the dust settles, the companies left standing will be in pole position to invest in two exciting new frontiers; complete cabin monitoring and the measurement of health, wellbeing and fitness to drive. Expect Smart Eye to continue to lead the charge towards new life-saving innovations.

Martin Krantz
CEO Smart Eye

Find the full report and all previous financial reports at https://smarteye.se/investors/financial-reports/ .

For more information:

Martin Krantz, CEO Smart Eye AB
Phone: +46 70-329 26 98
Email: martin.krantz@smarteye.se

About Smart Eye

Smart Eye is the leading provider of Human Insight AI, technology that understands, supports and predicts human behavior in complex environments. The company is on a mission to bridge the gap between humans and machines for a safe and sustainable future. Supported by Affectiva and iMotions - companies it acquired in 2021 - Smart Eye's multimodal software and hardware solutions provide unparalleled insight into human behavior.

In automotive, Smart Eye's driver monitoring systems and interior sensing solutions improve road safety and the mobility experience. The company's eye tracking technology and iMotions biosensor software platform are also used in behavioral research to enable advanced research in academic and commercial sectors. In media analytics, Affectiva's Emotion AI provides the world's largest brands and market researchers with a deeper understanding of how consumers engage with content, products, and services.

Founded in 1999, Smart Eye is a global company headquartered in Sweden, with customers including NASA, Nissan, Boeing, Honeywell, Volvo, GM, BMW, Polestar, Geely, Harvard University, 26 percent of the Fortune Global 500 companies, and over 1,300 research organizations around the world.

Visit www.smarteye.ai for more information.

Visit our investor web for more financial information: https://smarteye.se/investors/

Smart Eye is listed on the Nasdaq First North Growth Market. The Company's Certified Adviser is Carnegie Investment Bank AB (publ).

This information is information that Smart Eye is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-08-21 08:00 CEST.

Attachments

Smart Eye Interim Report Q2 2024

SOURCE: Smart Eye

View the original press release on accesswire.com

FAQ

What was Smart Eye's (SMTEF) net sales growth in Q2 2024?

Smart Eye's net sales grew by 30% to SEK 89.6 million in Q2 2024 compared to the same period in the previous year.

How much was the deal Smart Eye secured with major automakers after Q2 2024?

Smart Eye secured a SEK 700 million deal with Volvo Cars, Audi, Porsche, GM, and a new European OEM for 35 car models after Q2 2024.

What was the growth rate of Smart Eye's Automotive segment in Q2 2024?

Smart Eye's Automotive segment grew by 66% in Q2 2024.

When does Smart Eye (SMTEF) expect to reach profitability?

Smart Eye expects to reach profitability next year, according to the Q2 2024 interim report.

How many car models does Smart Eye (SMTEF) have in production as of Q2 2024?

Smart Eye increased the number of car models in production from approximately 50 to 60 in Q2 2024.