The following is a summary of the Tobii AB (Publ) (TBIIF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Tobii reported a decrease in overall revenue for Q1 2024, driven mainly by a decline in their Products & Solutions business.
EBIT for Q1 was negative SEK 75 million, showing an increase in losses compared to negative SEK 53 million the previous year, with measures in place to reduce cost and streamline the product portfolio.
The company completed an oversubscribed rights issue on April 3, generating net SEK 267 million and closed Q1 with SEK 107 million in cash and/or net debt of SEK 202 million.
With a focus on profitability, the expectation for 2024 is substantial EBIT improvement.
Business Progress:
Tobii completed a transformative acquisition of FotoNation, positioning them amongst the top players in the automotive interior sensing market, and is on track with the integration process.
The company secured a new DMS design win for commercial vehicles and expanded existing OMS design win to a new OEM, taking the total number of OEMs up to nine.
Tobii has restructured into three segments: Products & Solutions, Integration, and Autosense, with a long-term financial goal to secure positive free cash flow by 2026, and an EBIT margin of roughly 10% by 2026, increasing to around 20% by 2028.
Cost reduction measures are in place through the integration of the AutoSense business and a broader evaluation of investments, aiming to rectify a general dissatisfaction with Q1's revenue performance.
The company hopes for recovery in the Chinese market and an increase in units shipped considerably by 2028, expected to hit SEK 500 million in revenue from the AutoSense business.
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