Gapwaves (GAPW) Q4 2024 earnings summary

Executive summary

• Achieved strong topline growth in Q4 and FY24, with Q4 revenue up 164% to 17.6 MSEK and FY24 revenue up 140% to 66.1 MSEK, driven by increased customer engagements and new agreements.

• Expanded partnerships with key Tier 1 industry players, including Valeo, Smartmicro, and a new North American customer; production facility in Gothenburg inaugurated.

• Bosch ended a development agreement due to weak demand for advanced radar products, but new customer wins offset this.

• Business model focuses on scalable, flexible production with minimal Capex and strategic movement up the value chain.

• Focus for 2025 is on scaling production, expanding the customer pipeline, and driving long-term growth.

Financial highlights

• Q4 net sales reached SEK 17.6m, up 164% year-over-year; FY24 net sales SEK 66.1m, up 140% year-over-year.

• Q4 adjusted EBITDA was SEK -7.8m, a 41% improvement year-over-year; FY24 adjusted EBITDA SEK -32.0m, up 27% year-over-year.

• Q4 EBIT was -13.2 MSEK (vs. -19.7 MSEK); adjusted EBIT was -9.6 MSEK.

• Q4 net result was -12.1 MSEK (vs. -19.8 MSEK); full-year net result was -52.1 MSEK (vs. -69.2 MSEK); EPS negative.

• Q4 cash flow was -14.4 MSEK, negatively impacted by high accounts receivable; cash and cash equivalents at year-end were 40.8 MSEK.

Outlook and guidance

• Production for Valeo and Smartmicro to start in 2025 at the new Gothenburg facility.

• Anticipates continued growth driven by automation, regulatory trends, and increasing radar adoption in automotive and mobility sectors.

• Ongoing expansion into new segments and higher value chain positions through strategic initiatives and partnerships.

• Focus on scaling production, securing new contracts, and implementing automotive quality standards (IATF) in 2025.