Smart Eye Q2 net sales rise 53% on royalty revenue
Smart Eye Q2 net sales rise 53% on royalty revenue
Overview
Sweden driver monitoring AI firm's Q2 net sales rose 53% yr/yr on strong royalty revenue
Automotive segment organic growth reached 128%, driven by software license revenue ramp-up
Q2 EBITDA improved by SEK 26.4 mln yr/yr, reflecting operational leverage
Outlook
Company expects EU DMS regulation to drive demand for its driver monitoring solutions
Smart Eye anticipates further Interior Sensing nominations in the near future
Company sees ramp-up of production volumes and software license revenues from prior design wins
Result Drivers
SOFTWARE LICENSE REVENUES - Co said strong growth in high-margin software license and royalty revenues, especially from Automotive segment, lifted gross profit and EBITDA
INTERIOR SENSING ORDERS - Co said new Interior Sensing AI orders and design wins expanded its value per vehicle and contributed to growth
BEHAVIORAL RESEARCH DECLINE - Co said Behavioral Research segment declined organically by 7% due to lower hardware sales
Company press release: ID:nMFN4gDhMg
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | SEK 141 mln | SEK 156 mln (2 Analysts) |
Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Smart Eye AB (publ) is SEK114.00, about 21.4% above its August 25 closing price of SEK93.90
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)