TBIIF - Tobii AB (publ) (TBIIF) Q4 2023 Earnings Call Transcript
2024-02-01 13:30:23 ET
Tobii AB (publ) (TBIIF)
Q4 2023 Earnings Conference Call
February 1, 2024, 3:00 AM ET
Company Participants
Carolina Stromlid - Head, Investor Relations
Anand Srivatsa - Chief Executive Officer
Magdalena Rodell Andersson - Chief Financial Officer
Conference Call Participants
Daniel Djurberg - Handelsbanken
Erik Larsson - SEB
Presentation
Carolina Stromlid
Good morning, everyone. And warm welcome to the Presentation of Tobii’s Year End Results 2023. My name is Carolina Stromlid, and I’m Head of Investor Relations. With me today, I have our CEO, Anand Srivatsa; and our CFO, Magdalena Rodell Andersson.
As always, they will take you through the highlights and the financial development. They will also provide some more context to the acquisition of AutoSense and comment on the new financial targets that were released this morning. After the presentation, we will open up for questions, so feel free to start posting them in the chat already.
I will now hand over the word to you, Anand.
Anand Srivatsa
Thank you so much, Carolina, and thank you, everyone, for joining us so that we can share our Q4 2023 results with you. As Carolina mentioned, we have several things to go over today, but let’s first start with the Q4 2023 results.
I am really pleased with our performance this quarter and that we actually achieved our Q4 profitability target. This result was supported very much by a bounce back in our revenue from our Q3 2023 levels. And in fact, in Q4 2023, we had our highest ever quarterly revenue for our Products and Solutions business, and I think, that’s a really good result relative to where we were in Q3 2023.
Now the profitability was also supported by a substantial reduction in cost that we have taken, which has resulted in more than 10% cost reduction in Q4, but the structural elements of that cost reduction will help us also at the same kind of level through the rest of 2024. And I think it’s really great that we were able to deliver both of these things and deliver on our profitability target in a quarter when we were also making a transformative acquisition of AutoSense.
That acquisition, as you may have seen this morning, formally completed last night, and I’m really thrilled that we have taken the step to really strengthen our company in the mid- to long-term and balancing our risk and growth profile by adding a substantial opportunity for us in the Automotive Interior Sensing market. But we’ll talk about that a little bit more at the end of the presentation. We also reiterated this morning that we are going to be raising SEK300 million of capital with a rights issue to finance the operational expenses for this AutoSense segment in 2024 and 2025.
Now, let’s take a little bit of a look at the numbers. For Q423, we saw an organic decline in revenue of 4% and this was really a mixed result between our two segments. On the Products and Solutions side, we saw a 5% increase, and as I mentioned before, our highest ever revenue quarter with strength both in EMEA, as well as in the Americas, but we did see a little bit of tailing off in China at the end of the quarter....
Tobii AB (publ) (TBIIF) Q4 2023 Earnings Call Transcript