Wyld Networks - Exciting phase for the satellite network operator - Mangold Insight Analysis

Virtual satellite network operator Wyld Networks ("Wyld") has started to deliver modules, which is expected to generate substantial revenue growth in the coming quarters. Contracts have also been signed during and after the quarter, which may result in further increased revenue. Wyld Fusion was also released as a separate product, and is expected to contribute to its recurring revenue.

Wyld had a cash position of about SEK 33 million at the end of the third quarter. Mangold believes that it makes the company well capitalized to be able to scale up production and delivery in the fourth quarter. The company has issued warrants of series TO4 and TO5 with subscriptions in 2024. Mangold estimates that Wyld will raise approximately SEK 61 million through outstanding warrants programs. Wyld is expected to reach profitability by 2025, with expected strong growth and successful TO4 and TO5. We assume full dilution.

Mangold has marginally adjusted the estimate of income and costs, which leads to a slightly lower price target. Mangold continues to see Wyld undervalued, lowering the price target to SEK 17.00 (18.00) per share over 12 months, an upside of over 100 percent. In order to meet the price target, Wyld needs to deliver volume in the fourth quarter of 2023 and become profitable by 2025. Triggers are new contracts and the order book begins to be translated into revenue.

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