In This Article:
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Net Sales: SEK45 million, representing a 17% growth.
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Adjusted Net Sales Growth: 23% when accounting for currency effects.
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Gross Margin: 79%, slightly below the target of 80% due to increased hardware sales.
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Operating Expenses: On par with the previous year, with a 3% increase in cash OpEx.
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Operational Cash Flow: Improved from minus SEK8.4 million last year to SEK4.3 million positive this quarter.
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Order Intake: 13% growth, surpassing SEK50 million without large defense contracts.
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Annual Recurring Revenue (ARR): 11% growth.
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EBITDA Margin: 12%, below the target of 20%.
Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Clavister Holding AB (FRA:89P) reported its 11th consecutive quarter of net sales growth, with a 17% increase in Q2.
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The company achieved a positive operational cash flow of SEK4.3 million, a significant improvement from the previous year's negative cash flow.
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Order intake for Q2 showed a 13% growth, marking the first time the company exceeded SEK50 million without large defense contracts.
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The company maintained a strong cash position, supported by a cash injection since Q1.
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Clavister's base business, including next-generation firewall and identity access management, continues to provide stable growth and recurring revenue.
Negative Points
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The 17% sales growth fell short of the company's 20% target, partly due to currency headwinds and delayed large deals.
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Gross margins were slightly below the target at 79%, impacted by a higher volume of hardware sales.
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The adjusted EBITDA margin was 12%, below the company's ambition, primarily due to sales not meeting expectations.
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Currency effects negatively impacted revenue growth, with significant fluctuations compared to the previous year.
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The telecom market remains uncertain, with ongoing macroeconomic challenges affecting investment in 5G and cybersecurity.
Q & A Highlights
Q: You're talking about acceleration in your next-generation firewall business, but why aren't we seeing this in the numbers? A: John Vestberg, CEO: The growth we're seeing now comes from our base business. While growth can be more, it's part of our daily operation to optimize our go-to-market and sales efforts. The foundation is there.
Q: You shipped a lot of hardware during the quarter, but your ARR only increased by SEK1.4 million sequentially. Could you explain the dynamics? A: David Nordstroem, CFO: When we ship hardware, it doesn't count as ARR. ARR is the annualized value of the software on that hardware. There's a lead time from shipping hardware to the activation of the software license by the end customer.