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TomTom delivered a mixed set of Q3 results with a miss on the revenue line while profitability benefitted from a one-off subsidy. However, FCF surprised positively by comfortably beating the consensus despite a €1m lag burden from the Maps restructuring. TomTom reiterated its guidance underpinned by the fairly decent results. Regardless of the above, negative sentiment dominates in the market with the stock down by 7%.
Companies: TomTom NV
AlphaValue
TomTom outperformed a strong auto market, enabling the company to deliver consensus-beating figures in the Q2 23. Profitability is enjoying the knock-on effects, but FCFs remain burdened by restructuring-linked payments from the Maps reorganisation. Against the background of two consecutive positive quarterly surprises, the company decided to raise its guidance for FY 23.
TomTom has reported its Q1-23 results, exceeding the consensus estimates. The company’s revenue reached €141m, a 10% yoy increase. Growth was primarily driven by the Location Technology segment, which saw a significant increase to €118m, reflecting a 12% yoy rise. Meanwhile, the Consumer business segment remained flat at around €23m. Overall, TomTom has had a strong start to 2023 and has reaffirmed its guidance for the year, with a mid-term sales target of €560m.
TomTom ended the year with success and looks confident for the year ahead. It seems that the investments are starting to pay off, as the numbers of new partnerships and collaborations are increasing. Longer-term prospects appear brighter, with the highest backlog in years (€2.4bn) and a slew of strategic partnership implementations.
As TomTom is exposed to Auto volumes and is undergoing a restructuring, the fact that it has maintained its outlook for FY22 and FY23 is reassuring. However, the scope of the FCF guidance has been modified to exclude a heavy restructuring outflow. In addition, the slight beat in sales mainly came from the Consumer business. On the bright side, FCF has broken-even this quarter driven by an increase in Auto operational revenues.
TomTom has provided Q1 22 results in line with consensus. The weaker Auto volumes impact has been offset by the strong momentum in Enterprise and a slower than expected decline in the Consumer business. TomTom is well set to achieve its flat FY22 guidance.
Even though TomTom warned the market in its previous quarter that its Q4 would be heavily impacted by the semiconductor shortage and the lower Auto volumes that result, the global Q4 results were a miss. The longer-term perspectives seem brighter, with the highest backlog in years (€1.9bn) and the implementation of a strategical partnership.
Tomtom has published disappointing Q3 results. Both revenues and EBITDA came in below consensus. EBITDA was expected to be a positive €3.9m but came in at a negative €5.3m, lower than the most pessimistic analyst. This was due to low Auto volumes, which directly impacted revenues, margins and expected cash flow.
Due to semiconductor supply constraints in the Automotive sector, the Q2 results were below expectations and the new guidance is discouraging investors. The stock is down 14% today.
The Q1 results were solid, led by the strong recovery of the Automotive sector to offset the dying Consumer activity.
TomTom’s Q4 20 results fell short of expectations, but the major element of the disappointment was at the FCF level in terms of 2021 guidance as well as a slower recovery in Automotive.
TomTom released a strong set of results for Q3 20, driven by a rebound in both Automotive and Consumer. The company also posted a profitability upbeat on the back of good cost control. The only disappointment, but manageable, was seen at the FCF level. Still, we keep a positive view on the stock which should benefit from cash generation reversal from Q4 onwards.
TomTom’s Q2 publication was reassuring, beating the street on its Automotive business, but most noticeably on profitability. We expect a positive gross margin development in the coming quarter driven by a recovery in its activity as well as cost containment measures playing positively on the operating margin and FCF generation.
Q1 20 earnings came in below consensus expectations on the back of a sharper hit from COVID-19, mostly driven by the lower Automotive activities. Q2 is expected to suffer the most and, while the company had already withdrawn its FY20 guidance, FCF is expected to be negative in 2020. Hopefully, the strong balance sheet of the company might help it to cope with this crisis.
Q4 publication was a mix of contrasting moving parts, with an underperformance for Consumer while Location Technology, fuelled by Enterprise, held back. The commercial momentum was also strong for the latter. The company missed the consensus at the EBTIDA level, on the back of higher investment to support its technology.
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Eleco’s FY23 results show robust organic recurring revenue growth of +17% with recurring revenue +22% to £20.7m, adj EBITDA +2% ahead of the January update, and a confident outlook with Q1 ARR already at £24.5m vs £22.6m at FY23. At this point, the excellent start to FY24 leads us to reiterate our FY24-26E revenue, adj EBITDA, EFCF, and DPS, and we include the April 2024 acquisition of Vertical Digital in our FY24-26E net cash, as we explain below. As Eleco builds upon the successful acquisition
Companies: Eleco Plc
Cavendish
Made Tech has won a material expansion (worth up to £19.5m/2yrs) with a long-standing customer, The Department for Levelling Up, Housing and Communities (“DLUHC”). Coming off the back of a soft H1 bookings performance, we expect this win to materially boost investor sentiment and reassure how notwithstanding a tough backdrop (given an impending general election) MTEC continues to outcompete legacy providers and in-so-doing, grow its share of wallet with large/strategic customers. Landing near FY
Companies: Made Tech Group PLC
Singer Capital Markets
Companies: Cerillion Plc
Liberum
Interims to January are in line with the February TU, and materially unchanged forecasts for the FY July 2024. After the well flagged expected 1H24 revenue movement of -7% (vs 1H23 which had been strengthened by c£2m perpetual licence sales in the US), prospects for the second half are supported by several new contracts that will generate revenue in 2H24, in addition to material contract delivery milestones from existing large projects such as major TRACS Enterprise, Railhub deployments, and Rem
Companies: Tracsis plc
Cerillion has announced a very solid update, as H1 sales and EBITDA are both up 10% y/y to £22.5m and £10.9m respectively, notwithstanding the exceptionally strong base period (sales and EBITDA +27% and +38% resp.). Results therefore point to continued strong customer demand, reflecting how Cerillion’s out-of-the-box product continues to resonate and gain adoption, particularly in a ‘budget conscious’ environment, by offering faster time to market, greater configurability and at a lower cost. Me
tinyBuild’s FY23 results confirmed a sharp drop in revenue and swing into adjusted EBITDA losses, as well as asset impairments and high cash burn. After already making $10m of annualised cost savings, the company continues to run-down its cash balance and now relies on a H2-weighted release schedule to reduce cash outflows.
Companies: tinyBuild Inc.
Zeus Capital
Companies: 1Spatial Plc
Companies: 88E CNC FTC TRCS HEIQ CREO ZAM
As reported in March, underlying EBITDA profitability improved to record levels despite FX headwinds. Further platform and proposition developments were completed, key steps on its digital roadmap, and it has already won 7 contracts YTD. Alongside planned growth in private membership, this will at least offset the loss of one contract. Forecasts are left unchanged today and, as member engagement throttles back up, FX headwinds ease, and proof points of digital efficiency emerge, markets should b
Companies: Ten Lifestyle Group PLC
itim is a disruptive SaaS-based platform that enables store-based retailers to implement a proven Omni-channel solution. This morning, the group has announced an additional professional services contract with its long-standing client, The Entertainer. Following a year-long trial, The Entertainer is opening in over 800 Tesco stores across the UK & Ireland, alongside a supplier agreement for Tesco stores across Central Europe. Under the contract, The Entertainer will extend its use of itim's Unify
Companies: Itim Group PLC
WHIreland
Companies: Synectics PLC
Shore Capital
GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI
Companies: Intelligent Ultrasound Group Plc
22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARV CTL AFRN FEN HUW TENG BBSN EAAS VAL
Hybridan
Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H
Companies: Alphawave IP Group PLC
Capital Access Group
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