Q4 financial highlights
- Fourth-quarter revenue of
$16.6 million , up 75% vs. Q4 2022 - Q4 gross margin of 47% compared with 41% in Q4 2022
- Q4 adjusted EBITDA of
$2.2 million , compared with loss of$0.6 million in Q4 2022 - SimSports revenue of
$2.2 million in Q4, compared with$0.2 million in Q4 2022
2023 highlights
- Second-highest-ever full year Group revenue of
$76.3 million , up 51% from 2022 - Full year adjusted EBITDA of
$15.9 million vs. loss of$0.8 million in 2022 - Broadening addressable Liquid Cooling market with value offering towards low end of premium segment
- Full-year 2024 Group revenue growth expected in the range of -5% to 5% compared with 2023, with adjusted EBITDA projected to be between 12% and 17% of revenue
Gross margin was 47% in the fourth quarter and 45% for 2023, compared with 41% in each of the same periods of 2022. The gross margin increase reflects a richer product mix, reduced costs and favorable exchange rates for both periods.
"2023 represented a material rebound for our Liquid Cooling business and expansion of the SimSports product program to wide acclaim from the sim racing community. I'm proud of delivering our second-best year ever measured by revenue and profit, reflecting strong demand for our products," said
Operating income was
Operating expense of
During 2023, the Company invested
At
Working capital at
OPERATIONS
In the fourth quarter, the Company shipped 244 thousand sealed loop coolers compared with 157 thousand in the fourth quarter of 2022. Twenty new products began shipping in the fourth quarter, including twelve liquid coolers, three of which feature the new 8th generation cooling technology, and eight SimSports products. In the first quarter of 2024, ten new liquid cooling products and various new SimSports accessories are expected to begin shipping.
In
Larger customers have expressed increased demand for Liquid Cooling products with a lower price point for the Chinese market as well as other value-oriented markets. In response to this demand,
EXPECTATIONS FOR 2024
The macro-economic environment in the beginning of 2024 is continuing to show signs of improvement, although the picture is mixed in different regions. Geo-political tensions are still causing some market volatility and uncertainty, somewhat dampening discretionary consumer spending. Future revenue visibility remains low. In the latter part of 2023, strong demand from major OEM customers reflected their build-up of inventory levels. The higher inventory levels heading into 2024 are resulting in softer demand for
Considering the above factors, revenue growth in 2024 is expected to be in the range of -5% to 5% compared with 2023. The Group 2024 revenue outlook is derived from expected revenue development in the Liquid Cooling segment in the range of -10% to 0%, and for the SimSports segment revenue growth in the range of 40% to 60% compared with 2023. Adjusted EBITDA margin in 2024 for the Group is expected to be in the range of 12% to 17% of revenue.
Conference call and webcast
CEO
Webcast - audio and slide presentation
Please join the results webcast via the following link: https://events.q4inc.com/attendee/473037799
Conference call - audio only
Please dial in 5-10 minutes prior using the phone numbers:
+45 32 74 07 10 | |
+1 646 307 1963 | |
+49 6958 996 4217 | |
+47 57 98 94 30 | |
+44 20 3481 4247 |
Conference ID: 5624197
The fourth quarter and full year 2023 earnings release and presentation will be made available online at www.asetek.com and www.newsweb.no, as well as through news agencies. A recorded version of the presentation will be made available at www.asetek.com approximately two hours after the presentation has concluded.
Q&A
The conference call lines will be opened for participants to ask question at the end of the presentation. Questions can also be submitted through the online webcast during the presentation.
For questions or further information, please contact:
CFO
Head of Investor Relations,
About
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
https://news.cision.com/asetek/r/asetek---q4-2023--liquid-cooling-demand-and-simsports-expansion-driving-growth,c3942871
https://mb.cision.com/Main/6758/3942871/2656373.pdf
https://mb.cision.com/Public/6758/3942871/ae0272774c662459.pdf
https://mb.cision.com/Public/6758/3942871/b9f453f548d475a6.pdf
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