Tobii Interim Report for the first quarter 2022
Stockholm, May 5, 2022
Tobii AB (publ) today announced its results for the first quarter of 2022.
Comment by Tobii’s CEO Anand Srivatsa:
“Our business continued a strong recovery path, achieving an all-time high Q1 revenue. Products & Solutions delivered solid growth, and the customer engagement levels within XR and Automotive verticals accelerated significantly. A challenging and volatile business environment remains a reality, but we are off to a promising start and look forward to showing tangible success throughout 2022.”
First quarter January - March 2022
- Revenue increased to SEK 171 million (144), corresponding to organic growth of 7 %
- Gross margin was 71 % (72 %)
- Operating result (EBIT) was SEK -45 million (-37)
- The net result for the period amounted to SEK -42 million (-3)
- Earnings per share amounted to SEK -0.41 (-0.03)
- Free cash flow amounted to SEK -48 million (-11)
Significant events during the period
- Tobii announced it is in negotiation to be the eye tracking technology provider for the Sony PlayStation VR2
- Tobii announced the launch of Tobii Horizon software on the new Lenovo Legion 5 Pro Series gaming laptops, and the launch of Tobii Aware software in the new MSI Summit and Prestige Series laptops
- Tobii received three design wins in the quarter. One for integration of Tobii Aware in a PC, one for an XR medical application, and one for a screen-based medical application.
Significant events after the period end
- The Nomination Committee in Tobii proposed Per Norman as the new Chairman of the Board and Mats Backman as a new board member
Comments from the CEO
Our business continued a strong recovery path, achieving an all-time high Q1 revenue. Products & Solutions delivered solid growth, and the customer engagement levels within XR and Automotive verticals accelerated significantly. A challenging and volatile business environment remains a reality, but we are off to a promising start and look forward to showing tangible success throughout 2022.
Geopolitical and macro issues continue to create some headwinds
The covid pandemic continues to create new challenges, and despite a return to normalcy in many parts of the world, we were impacted by restrictions in markets like China. The war in Ukraine is another unexpected upheaval for the world. For Tobii and Tobiians, war is the antithesis of our ideas and beliefs, and we condemn the violence against the people of Ukraine. While the war and sanctions do not substantially impact Tobii’s revenue, it is a situation affecting us deeply because we have colleagues in and from Ukraine. We are providing our full support to these colleagues.
Continuing on a path of strong recovery
Given the intermittent disruption of our business due to the pandemic, I am satisfied with continued healthy growth in this quarter. Products & Solutions drove our business growth, and grew 12 percent organically. Our Integrations business continues to be lumpy and had an organic revenue decline of -12 percent due to a lower level of project revenues in the quarter combined with a decline of some hardware-heavy deliveries compared to 2021. However, the gross profit in Integrations showed continued growth, and our underlying pipeline continues to develop strongly. As the world has started to open up again, we have seen an increase in operational expenditures mainly caused by more travel and customer meetings, which is important for the long-term development of our business.
Positive trends in key investment verticals
Highlights in the quarter were positive developments in key engagements in both XR and Automotive. Our announcement that we are in negotiations with Sony to supply eye tracking to PSVR 2 demonstrates the progress we have made. Leading players in the industry continue to invest heavily in the metaverse, VR and AR, and the positive trends we highlighted in Q4 2021 accelerated further during Q1 2022.
Substantial progress in our automotive Driver Monitoring Systems offering
Q1 2022 was a key quarter for our driver monitoring system (DMS) initiatives. During the quarter, we demonstrated the performance and robustness of our technology to customers. We received strong positive feedback from key OEMs and tier-1 suppliers in the automotive industry, indicating that our solution is highly competitive. We are already participating in multiple RFQs, and I expect that number to grow over the year. The progress we have made is significant, and we are on track to intercept OEM design wins for start of production in 2025.
I am happy to announce we are pairing our ambitious long-term financial targets with an ambitious set of long-term sustainability targets. We aim to reach net-zero emission on scope one and two by 2025 and scope three by 2030. I am proud to commit to this goal as it is completely in line with our ambition to be a force for good in the world.
The uncertainty caused by Covid-19 remains present, and renewed supply chain risks continue to flare up for Tobii and our customers. Despite external disruptions, we are confident in our ability to execute over the course of the year. We expect to take large steps in 2022 towards our target of breaking through to profitability during 2023 and to reach SEK 1.5bn revenue in 2025.
A conference call and online presentation will be held in English today at 9:00 a.m. (CET). The webcast link and presentation material will be available in the calendar entry on Tobii´s website ahead of the webcast. The year-end report and a recording of the webcast will be available on the same page after the publication and webcast. You can also attend the webcast through the following link.
This information is information that Tobii AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, on May 5, 2022 at 7:30 a.m. CET.
Henrik Mawby, Head of Investor Relations, Tobii Group, phone: +44 (0)74 94 074 006, email: firstname.lastname@example.org
Tobii is the global leader in eye tracking and pioneer of attention computing. We are on a mission to improve the world with technology that understands human attention and intent. Creating tech for a better future, our technologies and solutions apply to areas such as behavioral studies and research, healthcare, education and training, gaming, extended reality (VR, AR & MR), automotive, and many more. Tobii's eye tracking is used by thousands of enterprises, universities, and research institutes around the globe. Headquartered in Sweden, Tobii is listed on Nasdaq Stockholm (TOBII). For more information: www.tobii.com.