Sunday, December 22, 2024

Clavister Holding AB (FRA:89P) Q3 2024 Earnings Call Highlights: Achieving Milestones with …

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  • Operating Profit (EBIT): Achieved positive operating profit for the first time.

  • Net Sales Growth: 16% non-FX adjusted; 21% FX adjusted.

  • Annual Recurring Revenue (ARR) Growth: 10% increase.

  • Order Intake Growth: 31% increase, with an accumulated order backlog of 234 million SEK.

  • Gross Margin: Improved to 80.4% from 79.3% in the previous quarter.

  • EBITA Margin: 25% adjusted, marking the highest EBITA margin so far.

  • OpEx: Reduced to 77% of sales, indicating growth with profitability.

  • Hardware Sales: Number of shipped appliances increased by 25% compared to last year.

  • Cash Flow: Operational cash flow supported by EBITA and EBIT positivity.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Clavister Holding AB (FRA:89P) achieved a positive operating profit (EBIT) for the first time, marking a significant milestone.

  • The company reported 12 consecutive quarters of year-over-year sales growth, with a 16% increase in non-FX adjusted net sales and 21% when adjusted for FX.

  • Order intake for the quarter grew by 31%, resulting in an accumulated order backlog of 234 million SEK, providing a strong base for future sales.

  • Clavister’s gross profit increased by 17%, indicating improved gross margins despite a strong increase in hardware sales.

  • The company successfully concluded a warrant package with a 98% participation rate, raising approximately 50 million SEK before transaction costs to pay down EIB debt.

  • The company’s ARR growth of 10% is trailing behind net sales growth due to time lags from shipments to contract starts.

  • Despite aspirations, Clavister did not achieve the 20% net sales growth target in Q3, indicating room for improvement.

  • The 5G business has been slow, with the first new 5G security win in a while, suggesting challenges in this sector.

  • The ongoing legal situation with 45 ID is impacting OpEx significantly, contributing to increased operational expenses.

  • Clavister’s growth target of 20% CAGR for 2023-2025 requires acceleration to around 30% in 2025, posing a challenge to meet this ambitious goal.

Q: Can you talk a little about your new packaging of the product? What has the reception been? A: John Vestberg, CEO: Our technology platform is powerful but complex, so we’ve created market-adapted solution packages to make it more accessible. The reception has been positive, with a significant deal already secured in Q3. This approach clarifies our product’s value, making it easier to sell and buy.

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