Napatech: Soft end to a challenging 2022 - ABG

Revenue significantly below our estimate in Q4...
...and revenue guidance for '23 is 25% below
Negative estimate revisions to cons


Soft revenue, but also lower costs

Napatech delivered Q4 sales of DKK 34m, down 38% y-o-y, resulting in FY revenue of DKK 159m, i.e. below the low end of guidance (DKK 170-200m). This was 33% below our estimate of DKK 51m with enterprise pipeline orders continuing to be affected by customers' buying behaviour. The gross margin came in at 59%, vs ABGSC at 70%, down from 72% in Q4 last year and likely driven by a lower share of enterprise customers with higher margins. Operating costs were DKK -29m, vs our estimate of DKK -41m. This resulted in an EBITDAC of DKK -8.7m vs ABGSC at DKK -5m. Furthermore, capex was significantly lower than expected at DKK -5.5m vs our estimate of DKK -13m. Consequently, EBITDA-capex came in at DKK -9.6m vs. our estimate of DKK -11m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Napatech/Equity-research/2023/2/napatech---soft-end-to-a-challenging-2022/