Tobii Dynavox Interim report for the first quarter 2024

Tobii Dynavox AB (publ) today announced its results for the first quarter of 2024.

Comment by Tobii Dynavox CEO Fredrik Ruben:

Our robust revenue growth sustains. We continue to invest in our marketing and sales capabilities along with investments to improve scalability. The overarching aim is to maintain a high growth rate and gradually raise the margin in line with our long-term target. The limited awareness of communication aids among prescribers and potential users presents a huge opportunity for us to expand our business over the long term and thereby make a difference to a growing share of individuals diagnosed with communication challenges each year.

QUARTER: JANUARY – MARCH 2024

• Revenue grew 28% to SEK 428 million (335). The currency adjusted growth was 28%.
• Gross margin was 68% (66).
• Operating profit totaled SEK 32 million (21), corresponding to an operating margin of 7.6% (6.3).
• Cash flow after continuous investments was SEK 10 million (17).
• Basic and diluted earnings per share were SEK 0.10 (0.07).

SIGNIFICANT EVENTS DURING THE QUARTER

• Tobii Dynavox has revised its financial targets and dividend policyto better algin with the company’s current performance and outlook.
• Gitte Pugholm Aabo proposed as new Chair of the Board of Directors of Tobii Dynavox.
• Tobii Dynavox proposes parent company name change from Tobii Dynavox AB to Dynavox Group AB

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

Tobii Dynavox Annual Report 2023 was published on April 8, 2024.

COMMENTS FROM THE CEO

Our robust revenue growth sustains. We continue to invest in our marketing and sales capabilities along with investments to improve scalability. The overarching aim is to maintain a high growth rate and gradually raise the margin in line with our long-term target. The limited awareness of communication aids among prescribers and potential users presents a huge opportunity for us to expand our business over the long term and thereby make a difference to a growing share of individuals diagnosed with communication challenges each year.

Sales growth was 28 percent compared to the same period last year. We continue to see solid growth across all geographies and user groups while users who need symbol-based communication and our software TD Snap, often children or young people with autism diagnoses, show a stronger growth trend than other diagnoses.

We continue to invest in further increasing the scalability of our operations, and we are confi-dent that growth and economies of scale will gradually raise the EBIT margin toward our long-term goal of achieving and exceeding 15 percent on an annual basis. In the quarter, our operating profit and earnings per share rose about 50% compared to the same period last year. Continued rising demand and high and stable gross margins are the foundations of continued margin expansion. The investments in new systems and resources, which in many cases are transitory in nature over 1-2 years are substantial, hence the underlying profitability is somewhat stronger than indicated by current results. As we continue to invest in our marketing and sales organization, we expect that total operating expenses will rise at a slower pace than revenue moving forward. The EBIT margin will increase as a result.

Product shipments continue to run efficiently through our three established delivery centers in Asia, Europe, and the US. Through them we cover the 65 countries where we sell either directly or through reseller partners. The availability of components remains solid, while we continue to maintain ample buffers to secure our ability to deliver to customers.

Acquisitions are an important part of our growth ambitions. Business logic and synergies are key when we evaluate potential candidates. The integration of last fall's acquisition, our long-term German supplier, Rehadapt, has been successful. The company both complements our offering and strengthens our market position in Germany.

There are a number of factors driving our growth and increasing profitability. The synergy of our robust product offering and committed employees, coupled with a market in its early phases with minimal penetration, points to high long-term potential. The majority of people who need communication aids do not know or are never presented with the solutions that we and our industry peers offer. In light of the low market penetration and our strong position, I remain confident about the coming year and the longer term.

Fredrik Ruben, CEO
 

Webcast
Today at 09:00 a.m. CET, Tobii Dynavox will host a webcast presentation for media, analysts and investors. If you want to attend the webcast click the following link. The interim report and a recording of the webcast will be available here.

This information is inside information that Tobii Dynavox AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulationand the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out below, at 07.30 CET on April 23, 2024.