Greater Than (GREAT) Q4 2020 earnings summary

Executive summary

• AI-based risk analytics and digital insurance offerings remained the core business, with a strategic shift toward selling technology and risk insight to insurers and mobility providers.

• Pandemic-related fleet inactivity and the wind-down of Swedish insurance distribution reduced revenue, while demand inquiries for dynamically priced insurance rose sharply.

Financial highlights

• FY2020 revenue was SEK 11.615m, down 23% YoY from SEK 15.064m; operating loss improved to SEK 23.772m from SEK 29.480m.

• Pre-tax and net loss were SEK 24.465m vs. SEK 30.346m; EPS was -SEK 2.30 vs. -SEK 2.99.

• Operating costs excluding financial costs fell to SEK 40.855m from SEK 49.830m, reflecting lower costs after exiting the loss-making Swedish insurance intermediary operation.

• Operating cash flow was -SEK 22.648m; year-end cash was SEK 17.586m vs. SEK 16.991m a year earlier.

Outlook and guidance

• Strategy prioritized growth in recurring revenue, particularly deeper penetration of existing insurer customers and sales of AI risk insight.

• Management expected many in-progress development projects to launch in 2021 and cited increased customer interest in flexible, usage-based insurance as a growth opportunity.

• Year-end financing was assessed as sufficient for at least 12 months based on cash, business plans and development forecasts; a January 2021 share issue subsequently raised approximately SEK 136m before costs.