OssDsign: Sales ramp-up continues for Catalyst - ABG

Higher sales and gross margin in Q3
EBIT revised up 12.3% for '24e and 0.4%-6.1% for '25e-'26e
Unchanged fair value range of SEK 8-14


Another quarter with >100% sales growth for Catalyst

OssDsign reported better sales growth and a higher gross margin than expected in Q3, resulting in a 32% earnings beat (less negative) on EBIT. Q3 sales of SEK 35.7m (+10% vs ABGSCe at SEK 32.5m) represent a y-o-y growth rate of close to 114%, or 121% adjusted for FX. The sales growth was driven by increased usage among existing customers as well as a broadening of the client base. Another positive surprise in the Q3 report was the gross margin, which came in at 96.9% (vs. ABGSCe at 93.0%). However, the beat was partly explained by releases of provisions made in previous quarters. Still, management expects the gross margin to remain above 93% going forward, which we find encouraging. Opex development in Q3 was in total very close to expectations, but with a higher level of sales commissions and fees (54% of sales vs. ABGSCe 49.5%) alongside lower selling and R&D expenses. Cash flow from operating activities was SEK -8.7m in Q3, marking an improvement from SEK -18.6m in Q3'23, and was above our SEK -12.2m forecast. At the end of Q3'24, OssDsign had SEK 108.9m available in cash and cash equivalents.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ossdsign/Equity-research/2024/11/ossdsign---sales-ramp-up-continues-for-catalyst/