Interim Report Q4, October-December 2023

Webcast 10.00 am MSAB delårsrapport Q4 2023
 

Summary October - December 2023

• Net sales amounted to SEK 116.9 (106.6) million, an increase of 10 percent compared to the same period last year. Adjusted for currency fluctuations, growth amounted to 8 percent.
• EBIT amounted to SEK 4.9 (7.7) million, corresponding to an EBIT margin of 4.2 (7.2) percent.
• EBIT adjusted for restructuring expenses and other non-recurring expenses amounted to SEK 20.9 million, corresponding to an EBIT margin of 18 percent.
• Profit after tax amounted to SEK 0.9 (6.3) million.
• Earnings per share before/after dilution amounted to SEK 0.05 (0.34).
• Cash flow from operating activities amounted to SEK 27.4 (43.3) million.
   

Summary January - December 2023

• Net sales amounted to SEK 416.9 (363.0) million, an increase of 15 percent compared to the same period last year. Adjusted for currency fluctuations, growth amounted to 11 percent.
• EBIT amounted to SEK 40.9 (18.8) million, corresponding to an EBIT margin of 9.8 (5.2) percent.
• EBIT adjusted for restructuring expenses and other non-recurring expenses amounted to SEK 67.7 million, corresponding to an EBIT margin of 16 percent.
• Profit after tax amounted to SEK 30.0 (17.1) million.
• Earnings per share before/after dilution amounted to SEK 1.62 (0.92).
• Cash flow from operating activities increased to SEK 75.0 (49.8) million, primarily driven by the period’s result, but also by a positive change in working capital.

CEO comments

I have now been at MSAB for three months and after discussions with customers, employees and partners, I can confirm that we have a stable market position with sought-after products and solutions for mobile forensics. The launch of XRY Pro in 2023 demonstrates this, where we have strengthened our position with existing customers and gained a number of new customers.

With a good 2023, we have a stable financial foundation to stand on. During the fourth quarter, net sales reached SEK 116.9 million and a total of SEK 416.9 million for the year. This represents a currency-adjusted revenue growth of 11%, which strengthens our financial and market position.

Going forward, it is important that we focus on development in areas such as modernization, efficiency and market adaptation to ensure our long-term growth. We also need to focus on making our organization more customer centric. During the past quarter, we have therefore initiated measures to strengthen our leadership culture with a focus on growth and change.

My discussions with customers in different markets have highlighted their challenges related to management of large amounts of data, cloud adoptions, and technical complexity in digital forensics. We see these challenges as future opportunities that require us to continuously adapt and develop our services in tune with the customer's needs. Our priority is to efficiently allocate resources and investments to develop and broaden our product offering across the entire digital forensics value chain. In addition to that, we will also focus on developing and adapting our sales organization to correlate with how we see the industry developing in the future.

Another focus area is communication with the market. We need to provide more clarity on what we do for our customers, both today and in the long term. It should be clear where we focus and how well we deliver on our plans. We have also started to review how our business models are translated into our financial reporting.

Overall, 2023 was a year with good growth but also a year of major changes. We are now facing a period where continued modernization and building capacity is crucial. It is a challenging but exciting road ahead where our upcoming strategy will serve as a guiding star.

Stockholm, January 2024

Peter Heuman

CEO MSAB

The information in this report is such that MSAB, Corporate ID number 556244-3050, is required to disclose in accordance with the EU’s Market Abuse Regulation. The information in this report was submitted for publication on January 25th, 2024, at 08:00 CEST.

For further information, please contact: 
Peter Heuman, VD MSAB, peter.heuman@msab.com
Tony Forsgren, CFO MSAB, tony.forsgren@msab.com

About MSAB:
MSAB is a world leader in forensic technology for extracting and analyzing data in seized mobile devices. The company develops high-quality and easy-to-use software for law enforcement organizations, such as police, defense, and customs. The products, which have become a de facto standard for securing evidence in criminal investigations, can be supplemented with reporting tools and a large range of training with certifications within a holistic method for forensic science. The company serves customers in more than 100 countries worldwide, through its own sales offices and through distributors. MSAB is listed on Nasdaq Stockholm under the ticker name: MSAB B. www.msab.com

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