Smart Eye (SEYE) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 2% year-over-year to SEK 79.1 million, driven by 35% growth in Automotive, offset by a 13% decline in Behavioral Research.

• EBITDA improved to SEK -17.4 million from SEK -23.4 million, reflecting tight cost control and lower expenses.

• Operating loss narrowed to SEK -61.5 million from SEK -63.1 million in Q3, with depreciation from Affectiva and iMotions acquisitions at SEK -28.8 million.

• 37 new automotive design wins were announced in Q3, with an estimated order value of SEK 735 million.

• Cash and cash equivalents at quarter-end were SEK 45.5 million, with total available credit facilities of SEK 127.8 million, later increased by SEK 150 million in October.

Financial highlights

• Q3 net sales: SEK 79.1 million (up 2% year-over-year); Automotive: SEK 32.4 million (up from SEK 24.0 million); Behavioral Research: SEK 46.6 million (down from SEK 53.7 million).

• Gross margin for Q3 was 89% (down from 90%).

• EBITDA for Q3: SEK -17.4 million (improved from SEK -23.4 million); operating loss: SEK -61.5 million (improved from SEK -63.1 million).

• Earnings per share after tax: SEK -1.46 (Q3 2023: SEK -1.75).

• For Jan–Sep 2024, net sales rose 21% to SEK 254.8 million; operating loss improved to SEK -187.2 million from SEK -215.8 million.

Outlook and guidance

• License revenues from production cars are expected to rise rapidly, supported by the ramp-up of models affected by new European safety regulations (GSR) in 2024.

• Q4 is anticipated to be the strongest quarter for Behavioral Research due to typical seasonal effects.

• Targeting EBITDA positivity in early 2025, with positive cash flow expected 2–3 quarters later.