Tobii’s interim report third quarter 2023: Weak quarter but target for Q4 profitability remains
Third quarter July – September
- Revenue was SEK 150 million (176), corresponding to an organic decline of 18%
- Gross margin increased to 75% (74%)
- Operating result (EBIT) was SEK -69 million (-36)
- Net result for the quarter amounted to SEK -74 million (-17)
- Earnings per share amounted to SEK -0.70 (-0.17)
- Cash flow after continuous investments amounted to SEK -71 million (-64)
Significant events in the quarter
- Tobii received four design wins with four different customers; two for diagnostic and treatment with eye tracking and VR using Tobii Ocumen XR software, one for integration of Tobii’s screen-based eye tracker platform into communication devices and one for PC integration of Tobii Horizon head tracking software for maximized in-game immersion.
- Tobii completed the acquisition of all shares in Eyevido GmbH to a purchase consideration of SEK 9 million to strengthen the consumer insight software portfolio.
CEO Anand Srivatsa comments:
“The third quarter was a weak financial quarter with an organic revenue decline of 18%. The decline was primarily driven by our Products & Solutions business. The quarter presented particular difficulties in Asia, deviating from previous quarters where China led a significant part of the growth. We saw a more pronounced summer vacation period impact on revenue with July and August yielding the weakest results and September showing signs of recovery in China and North America.
On a positive note, our Integrations business delivered a decent financial performance despite receiving substantially lower revenue from Sony PS VR2 in the quarter. The revenue for the segment was down 2% organically year on year and would have demonstrated strong double-digit growth if we account for the Sony contribution in the corresponding quarter last year.
We are still strongly committed to reach our EBIT profitability target in the fourth quarter 2023. In order to achieve this, we are taking measures to manage our cost base and improve our sales effectiveness. The weak third quarter does increase the risk towards the profitability target, but we are encouraged by a solid start of the fourth quarter.
From a longer-term perspective, we see clear signs of increased demand for attention computing. We believe that as eye tracking is integrated into mass volume devices like the Apple Vision Pro and Amazon’s new Fire 11 tablet, demand for our technologies will increase across many other verticals. The increase in awareness and accessibility of our solutions will accelerate broad adoption and volume ramp and I believe Tobii is in a strong position to capitalize on this opportunity.”
Q3 presentation today at 9.00 a.m. CET
Tobii’s CEO Anand Srivatsa and CFO Magdalena Rodell Andersson will present and comment on the report. After the presentation, there will be time for questions. The presentation will be held in English.
Please make sure you are connected to the webcast by logging in and registering to the Microsoft Teams service a few minutes before the presentation begins. It will be possible to ask questions via the chat. If you wish to ask questions verbally, please contact investor relations.
The presentation material will be available at Tobii’s website. The interim report and a recording of the webcast will be available on the same page.
Contact
Carolina Strömlid, Head of Investor Relations, Tobii AB, phone: +46 (0)70 880 71 73, email: carolina.stromlid@tobii.com
This information is information that Tobii AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on November 7, 2023, at 7:30 a.m. CET.
About Tobii
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, 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.