Wyld Networks - Slower rollout than expected - Mangold Insight Analysis

Virtual satellite network operator Wyld Networks ("Wyld") has started delivering products in the fourth quarter of 2024. this is a significant milestone for the company. However, the scaling-up of sales during the quarter has not materialized, which means that we adjusted the estimates for a slower rollout than expected. In March, Wyld entered into three partnerships with a potential total value of up to SEK 92 million. Wyld previously had an order book of SEK 91.5 million, which is expected to be translated into revenue in 2024 and beyond.

Wyld:s cash amounted to about SEK 20 million by the end of the fourth quarter. The company has also issued warrants of series TO4 and TO5 with subscriptions in 2024. Mangold expects Wyld to return to profitability by 2025 with successful issues. We count on full dilution from TO4 and TO5 in the valuation. 

The revenue estimate has been adjusted downwards and at the same time the cost estimate increases, which leads to a lower price target but with a continued large upside. Mangold lowers the price target to SEK 14.00 (17.00) per share in the 12 months term. To meet the price target, Wyld needs to deliver significantly increasing sales in 2024 and become profitable in 2025. Triggers consist of new contracts signed and the order book begins to be translated into revenue.