NEON - Earnings call 4 2023

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Jesper Henrikson

Hi, and welcome to Neonode's Q4 [Audio Gap] Today, we'll start with a brief company presentation and a review of the Q4 results by the company's CEO, Urban Forssell; and CFO, Fredrik Nihlen. And then we'll move over to a Q&A session with me and the company's other analysts participating.

So with that said, I leave the word over to CEO, Urban Forssell. Welcome.

Urban Forssell

Thank you very much, Jesper. side, call. this my year and from earnings XXXX also welcome QX to full And will me, a presenter here Nihlen, Today's be CFO. on with CEO; our stage me and in just few Fredrik myself, minutes, Urban Forssell,

we XXXX. We brief a go X introduction, agenda and strategic will brief, slides I have summarizing have then operational short a through pretty today and developments in

give results will word this will Fredrik who the and financial give come the I then the currently to a which for I year. update, And Next, summarize XXXX. include strategy also you back will would of rest

So disclaimer forward-looking a with Incorporated, as minute in management This presentation the the I related And of take this would its may read contain read, introduction, disclaimer. following and Neonode legal way. I that of said, and written statements to while the contains to this like oral and summarize you company statements. you part will

or potential information include and about statements performance regulatory market met about include sales Forward-looking They matters strategy growth opportunity efforts. and current plans, may sales statements introduction, also financial future and expectations, events.

statements from carefully involve performance Forward-looking unknown this number company's on by obtained The of that statements in are and today's and to reliable. sources industry risks, Prospective of derived these contained presentation consider expectations statements. believes based well as information sources. information available is information and may factors. Any included advised be of activity, its the made or company the or it by to are may results company are own actual information various revise management forward-looking company public its levels and sources. and achievements to different accurate has other be undertake on management presentation its investors materially of known The assumptions, date. has to which such and duty no herein from provided the update uncertainties factors are forward-looking other prepared This been and from risks, and the Certain as the uncertainties information as statements. that information based company a been cause

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our summarize CFO, to point to Now view, 'XX, like year. a take on Fredrik up stage here the would previous from the us results I through invite financial Nihlen, financial of Fredrik? to for

Fredrik Nihlen

Thank you, Urban.

we Products loss come business. though activities that costs. back License million the to of products. XXXX, million, $XX.X section. only a in revenues will had $X.X Even compared related as revenues as is in of find million operating was also out surplus the $X.X of I million, XX% at and was a cash for net a to volumes slide. This to on decrease is a our and as burn, what with said summarize [Audio compared is financial compared to our net loss. I result in the this before. We the net volumes for loss of our will Urban million neonode.com XXXX in a cost you $XX.X later decrease customers, receivable million And in before. and our XXXX. stands decreased XXst due low profit $X.X $X.X million, of year accounts onetime XXXX. before, demand more sales the earnings costs, million. key some decrease Summarizing Gap] at had to in XX% customers, under That you Urban XXXX Product XX% as cash our phase to with of see business. Operating out December XXXX phase X% payroll $X.X is in X% Urban marketing that XXXX. And always, $XX.X the Investors presentation Products in we to the the is What in and do As we spend, has of can out to a million compared can in was inventory to million XXXX. here, here due points. in release XX-K things said It and and to XXXX. to increased made increase major had $XX.X increased an of to The impacted It's the we XXXX. announcement by with said, December compared and XXXX $X.X out of revenues. this -- than expenses

information in the more happened revenues. what some business the of and And the cost on phaseout Products of has

to future we down we Kungsbacka half, at rent with that plan has from a be cost purchase can Both during production So the And an loss of to loss buy for. is more revenues cash impairment customers. them unit components during strategy update end had by and we produce Urban. inventory components half, the efforts the of flow XXXX. XXXX. XXXX also we TSMs September. fee selling loss The some license wind impairment end potential canceled there sell this and P&L $X.X in pay to that $X.X in of had The We impacts And that, effect. in for effects, a no And agreement million and first will in the the and to here commitment. had in million we loss the of to had will second had the some recover

Urban Forssell

Thank you, Fredrik.

effect. said move you Sweden. business that in onetime the we other instance, much, staff explains making Fredrik, of our strategic from So Kungsbacka, it's XXXX. negative of that taking and production say heard Cash the and to, Products closing would they And have much are in the in will compared our things, This rather P&L, sort they are effects our affect obviously, phasing for out bulk some we as production smaller unit. negligible. losses are of which in are unit And impairment we big and that that I also result sort and almost

Let and actual The focuses consequence strategy this the me operational summarize Sharpened and reduced technology means on that we December licensing. launched company complexity. explain XXX% greatly on our This strategy software of in XX. new

We have in are been parallel. Products They running a intrinsically business and a business Licensing quite different.

sensor the sales to supporting happy these customers in the negotiating bigger are marketing handful and that we with investigate distributors. network agreements have instead loss regarding from the own in sales offered best customers products and buying partners and that them followed say years, will direct we are be products working been a said, and A and Fredrik of X, resellers and to future. And actually, products, inventory we value-added all seriously both these worked instance, of that their are dismounted have. have to For us last TSM for this business through technology indirect as of sales the are currently you of than interested of have these and set us modules. And the we we production and to been component license X up the more as TSM the now impairment with value-added these of that on how during in lot type we resellers licensing the

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should always new doing. end conclusion earlier to can make whether strategy. Also or according have we are are of now we year But debate later. You to to the this move, made we the and decision come have what to we this explain last operating

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very very, So busy.

to see of participated last slide, great A planned by X with new to I up show and we generated. in here, announcements moved now end York a Vegas quite Then and were January. of different events us I in ways capitalizing in after. different customers And shows. big Las visitors They said contacts both two business. retail are up back we we the the and in a over spontaneous lot week the CES We with leads great. this as And We our of us. these momentum. We after at are directly with come we on lot a NRF year. XXXX big are our entering slide team following visitors that outlook. actually New Both happy had with were previous grow If had go looked in

the XXXX that the presentation company So to rest to future And Jesper? Q&A a our and about we forward are move we excited of and our And coming session today, look years. potential. from quite we ends here. short the on

Jesper Henrikson

right. for Perfect. presentation. Thank All you much that so

about last let's progress on. So on follow the up move automotive the slide in and to so

your won as a design first X. Tier software You win

about about like So like from also, if just stage? a like into like the into more ramp-up a could revenues you process now and on? the possible, the, go detail bit like of And quantification

Urban Forssell

all are, of this, all, projects to first like sales in very I that cycles automotive, are we want say typically In automotive long.

secure actually business, working of it's for while a we all these similar super Before this this customers we right number now, been And with have X ongoing. course, have we And years. confidential than is more of conversations.

your adapt development, official So have of hang you to in process which this application underlying, typically as and where the XX to in to to and finally between stamina award, in have here, the patients, it, then managed some integrate was have And get have case, you start call solutions you But months. of that's some to the there. was we platform. triggers end a that I it XX QX,

this be mass as And much of will on year as per production and license also, you vehicle. quite produced, NRE for we license During get this up keep want use. have Typically revenues also from will the revenues royalties first they to per earn year, revenues per this we that development but want possible, that application are launched we indeed, and When course, based to the vehicle. phase, And program start in vehicles NRE revenues. next NRE substantial project. we can to earn development platform phase, the

also in as you we for other Sometimes manage on to additional during of also software tools customers to some customers support. can get certain or to And later also slide, always the demonstrators. prototypes, phase I can We development the like can try and revenues type payment. to especially we, design to mentioned kind of production development down tools license sell both development generate sell we

So being a for to your long an have automotive supplier means time that business. you quite frame have

to need start that before a look And the of You into you have a course, to far have quite you future rack up see then and you to payoff. have of growing big some some, unit to NRE revenues the during time, these stable really business. and phase, over then have during a demonstrator phase, royalties. per revenues, prototype production and But several development breakeven

Jesper Henrikson

Great. a And have like span average Like as unit your you could you do it for possible to, that comes per like price? it I mean, selling to communicate? the is royalty like

Urban Forssell

insights are in The vehicle. some low has that a that per they can everyone high. point volumes automotive, automotive think But and it's software of type the being fairly this I licensing estimate. production into typical royalty

a high talk number can do volumes there. of you that of in vehicle, calculations the dollars you but So about per sort

We different. are no

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more fill forward. working still think up we And very, will like are the now I of our projects hard this. going margins pipeline good So to very be

Jesper Henrikson

you do on. And that filling market mean producing such is the Do up for? feel wish so pipeline speaking that the as results of substantial quite amounts marketing, you you I and the projects, about CES on spend

Urban Forssell

we at definitely exposure event. and yes, marketing, actually got certain North I'm customers from the see met and digital events. a where Asia, of but customers interest also from event America CES great from from one a lot our success. also at specifically look to was thrilled key you Europe, was If we an the

So really it was really, good.

in and investing Despite saw year. cases. the sales Products demand we we our weakening our in last business, during many were admit Looking weak, with partners

So co-exhibited and events we events partners. kiosk elevator several other with and

results So course, part were we there, strategy. why And of there, that, decision our the can the cost, changed the of we sort present. were but reduced were still meager. That's of we say you

in everything more be So operation our simplified. will

with targets our and better will segments meaning marketing bigger efficiency. more fewer also and that effort and spend fewer bigger but focus fewer can We on we target customers,

Jesper Henrikson

out, up strategy aiming as you like, also targets All you and as products like in But then you're But when we changing software-orientated millions segments revenue like and have the move you the right. running, for over And bit dollars spoke spoken still like any about obviously, more your and growth was we've profitability for. have, of you're of quite previously, model? business that revenues. also do of assuming do business the about a and tens to

Urban Forssell

Yes.

software. very actually several being around it's or that any don't in margin we to our aiming more margins. in we and we let state gross say more guidance like to So the years. this, on growth And that very, But coming we see turnover times steady healthy that also a me reasonable reach give on are double also will assume focusing

low So line aiming gross level very, in interesting. and margins we high very are XXXX. admit top the be at also are at that very on going we very will the a think forward, growth we I

different focus where point points. inflection an as this see things personally one together I at come So

lot have And a We this focus strategy award program And boosting design life a a interest. same move, are with big on at breakthrough win. to span. licensing. has of new XXX% that our That the triggered long time, an we a for

think will internal our but of our allowing in margins sales the more I in and our on in marketing, opportunities. both by So to simplifying ambition focus the that development bigger improvement growth the fewer operations, and our product support us

Jesper Henrikson

how in purchases we your But like then mean last we Great. the like only time. I seen time I'd you insider haven't a ask ownership for for any And question. quite one have to view like company?

please yes, elaborate? So

Urban Forssell

Board we are our and management. in in our also Yes,

some significant in have holdings We Neonode.

said, I exposure for that share. for is the Neonode, needs a quite to current attractive. my themselves think personal. price speak have feel big everyone This I to actually, quite I share

let's So what in an see position. do. interesting we I'm

course, you I up We this working current of scale or good give to are, and with easily market our think, if you today. cap, a if investment good could return enter business, grow it it's, today hard a

I not I questions certainly from. agree you. where So believe what let's do. our are see. that And I with the I but anything a Board. see will And still can strong I'm today, we believe with promise coming I believer.

made and and and I continuing we professional them massage having closely refine And both independent the a Directors. margins. to grow this [indiscernible] work in to we are maximize with best of Board our, We move line not strategy. looking very that the how for market very way the And shaping cap. are course, is the top one. to last of the

us for own we several speak our also both As of and I interest. but shareholders, of said, for big are course, Neonode,

the future very are still optimistic about Neonode. we So

a So investment. it's good

Jesper. buy You more should shares,

Jesper Henrikson

both and Yes. me forward. Thanks. joining today, so And much you, luck good going you thank for of

Urban Forssell

Thank you.

Neonode (NEON) 28 Feb 242023 Q4 Earnings call transcript