VEF (VEFL SDB) Q4 2023 earnings summary

Executive summary

• FY23 NAV rose 16% to USD 442.2 mln; NAV per share reached USD 0.42 and SEK 4.26.

• FY23 net result was USD 60.1 mln versus a USD 377.4 mln loss in FY22, including a USD 74.4 mln gain on financial assets at fair value.

• Portfolio weighted NTM revenue growth was ~35%; most holdings were profitable, cash-flow positive, or on a clear path to breakeven.

Financial highlights

• FY23 EPS was USD 0.06 versus USD -0.36 in FY22; 4Q23 net result was USD 19.4 mln and EPS USD 0.02, versus a USD 61.5 mln loss and EPS of USD -0.06 in 4Q22.

• FY23 operating expenses were USD 7.1 mln and net financial items were USD -7.1 mln.

• Portfolio fair value reached USD 460.0 mln, up 21% YoY.

• YE23 cash and cash equivalents were USD 17.7 mln, with USD 3.9 mln in money market funds; total liquidity was USD 21.6 mln.

Outlook and guidance

• 2024 priorities included strengthening the balance sheet, prioritizing exits, resuming investment selectively, and reducing the traded discount to NAV.

• Upward portfolio forecast revisions, stronger macro conditions, and recovering peer multiples were cited as support for 2024 NAV and portfolio performance.

• 94% of the active portfolio was profitable, cash-flow positive, or had capacity to reach breakeven without additional funding; 6% required funding to breakeven.