Maven Wireless Sweden (MAVEN) Q2 2024 earnings summary

Executive summary

• Focus on expanding into cellular systems and 5G DAS, shifting from emergency radio, to capture a larger share of the addressable market, which is 83% cellular.

• Maven Wireless specializes in wireless coverage for buildings, tunnels, metros, and trains, with a global presence, 73 patents, and major frame agreements.

• Strategic investments in new products and market entries, especially the Nimbus 5G platform, US and UK subsidiaries, and production agreements, are underway to drive future growth.

• Key market breakthroughs and first orders in the UK (Silvertown Tunnel), Ireland (Dundrum Town Centre), Italy (GSM-Rail), India (5G DAS), and Switzerland.

• Emphasis on building references with major telecom operators and leveraging partnerships to facilitate further market penetration.

Financial highlights

• Q2 2024 net sales were SEK 53.3M, down 19% year-over-year; H1 net sales were SEK 107.0M, up slightly from SEK 106.5M.

• Gross margin improved to 41% in Q2 and 44% year-to-date, up from 36% last year.

• Q2 EBITDA was SEK 2.8M (5% margin), down from SEK 11.0M; H1 EBITDA was SEK 13.1M.

• Order intake for Q2 was SEK 39.2M, up 14% year-over-year; order book at quarter-end was SEK 58.5M.

• Share price at June 30th was SEK 17.8, down 6% during Q2 2024.

Outlook and guidance

• Continued focus on strategic investments to support expansion, especially in cellular, 5G, and international markets.

• Production optimizations at the new factory are expected to improve delivery rates in Q3.

• The DAS market is projected to grow from $10B in 2023 to $13B by 2028 (CAGR 6.2%), with one-third addressable by the company.

• Expectation of increased order intake over time, with recognition that larger projects have longer decision cycles.

• Management remains confident in long-term growth, prioritizing expansion and market entry over short-term margin maximization.