Waystream Q4’23: Weak market hits hard - Redeye

Redeye saw a Q4 report that was again weaker than expected. The weak trend continued with a very weak sales development during Q4. The macroeconomic situation and inventory built up at clients have made it a potent mix for decreased sales. The report has few positives, even if the weak sales and high inventory overshadow it. The market headwinds that have struck the Nordic markets hard may still stretch longer. The environment does not favor investments in hardware. The long-term positive aspects will be overshadowed by the volatility in sales and results for some time, and the current development puts pressure on improving sales in the first half of 2024e as the inventory levels are too high and tie up capital. We expect to lower our estimates for 2024/2025e more substantially as we do not see the markets picking up until at least the second half of 2024e. The financial situation, although in control at this point, makes it necessary to decrease the inventory during both Q1 and Q2. We will likely lower our Base case in the region of 20-25%.

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