Sweden's Teneo Q2 net sales drop after US partner loss
Sweden's Teneo Q2 net sales drop after US partner loss
Overview
Sweden AI contact center firm's Q2 net sales fell 71% yr/yr after US partner loss
Company posted negative adjusted EBITDA and gross margin declined to 70% from 88%
Teneo completed debt-to-equity swap, rights issue, and major cost reductions; now debt-free
Outlook
Company says it will focus on growth by expanding Teneo 10's customer base
Teneo aims to maintain a materially lower cost base after restructuring and dismissals
Company expects debt-free balance sheet and new technology to support future operations
Result Drivers
US PARTNER LOSS - Co attributed sharp revenue decline to loss of US distribution partner
COST REDUCTIONS - Co implemented major cost reductions including layoffs and vendor dismissals to lower operating expenses
PLATFORM REARCHITECTURE - Co launched Teneo 10, a rearchitected AI platform aimed at broadening customer base and reducing concentration risk
Company press release: ID:nMFN9MtnRm
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| SEK 6.40 mln |
|
Q2 EPS |
| SEK 0 |
|
Q2 Adjusted EBITDA |
| -SEK 17 mln |
|
Q2 Gross Margin |
| 70.00% |
|
Q2 Adjusted Cash Flow |
| -SEK 18.70 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Teneo AI AB is SEK0.60, about 841.9% above its August 28 closing price of SEK0.06
Reuters Recommended Reads
Aug 28 - Sweden's Xintela Q2 loss narrows as income rises, costs drop
Aug 28 - Finland's Digitalist Group Q2 revenue falls on weak demand
Aug 28 - Swedish economy posts strong growth, consumers more upbeat ahead of election
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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.)