Dynavox Group AB (publ) today announced its results for the second quarter 2024.
Comment from the Dynavox Group CEO Fredrik Ruben:
We continue to grow sales at a rapid pace while investing in back-end systems and sales capacity to improve the scalability of the business. This is in line with our long-term goal of helping more people, combined with high growth and a stronger operating margin. The limited awareness of assistive communication continues to offer significant potential for us to achieve long-term growth and make a difference for many more individuals with communication difficulties.
QUARTER APRIL - JUNE 2024
- Revenue grew 25% to SEK 476 million (381). The currency adjusted growth was 24%.
- Gross margin was 69% (68).
- Operating profit totaled SEK 53 million (29), corresponding to an operating margin of 11.0% (7.6).
- Cash flow after continuous investments was SEK 42 million (30).
- Basic and diluted earnings per share were SEK 0.34 (0.16).
PERIOD JANUARY - JUNE 2024
- Revenue grew 26% to SEK 904 million (716). The currency adjusted growth was 26%.
- Gross margin was 68% (67).
- Operating profit totaled SEK 85 million (50), corresponding to an operating margin of 9.4% (7.0).
- Cash flow after continuous investments was SEK 52 million (47).
- Basic and diluted earnings per share were SEK 0.44 (0.23).
SIGNIFICANT EVENTS DURING THE QUARTER
- Tobii Dynavox enters into an agreement to acquire Link Assistive, gaining direct presence in Australia and New Zealand
- The Swedish parent company Tobii Dynavox AB (publ) has changed its company name to Dynavox Group AB (publ). The share will going forward be traded under the new ticker DYVOX.
COMMENTS FROM THE CEO:
We continue to grow sales at a rapid pace while investing in back-end systems and sales capacity to improve the scalability of the business. This is in line with our long-term goal of helping more people, combined with high growth and a stronger operating margin. The limited awareness of assistive communication continues to offer significant potential for us to achieve long-term growth and make a difference for many more individuals with communication difficulties.
Sales growth denominated in local currencies was 24% for the quarter. We continue to see steady growth across all regions and user groups, with a continued strong increase in new prescriptions. Non-eye tracking users continue to show stronger growth. These are predominantly individuals requiring symbol-based communication and our TD Snap software, often children or young people who have been diagnosed with autism.
As previously, we are investing to further improve the scalability of our operations. Growth together with scaling effects will steadily continue to boost the EBIT margin to-wards our long-term objective of achieving and surpassing 15 percent annually. This is confirmed by the fact that our operating profit grew by more than 80% and earnings per share surged by more than 110% compared with the same period last year.
Acquisitions serve as a complement to our predominantly organic growth ambitions. In mid-May, we agreed to acquire Link Assistive, our reseller partner in Australia and New Zealand. This transaction brings us closer to our customers in these markets, thus making it easier for us to support individuals with disabilities in communicating more efficiently. Australia is already one of the countries with the best performing reimbursement systems for our types of assistive devices. Having direct presence has in the past been the recipe for how we can make an already successful market perform even better. The transaction is expected to be completed in the second half of 2024.
The health economic study we commissioned and published in May by the research firm Augur strongly confirms what we already knew - that assistive communication devices have a major positive impact on people with disabilities and their families. Quality of life is doubled for users who have an assistive communication device compared to life without. At the same time, the solutions pay for themselves three times over in purely economic terms for society. Achieving a positive economic outcome - a result above zero - is rare in this type of study. We are encouraged by the outcome and we will continue investing in similar initiatives going forward for use as support for key opinion leaders and policy makers in our quest for increased awareness and improved funding.
We changed our company name to Dynavox Group AB as planned at the end of June. The purpose of the name change is to clarify for both investors and new talent in Sweden that the company is independent from Tobii AB and specifically that eye tracking technology only represents a subset of our comprehensive offering of predominantly prescribed assistive communication solutions. The name change only affects the parent company of the group. The customer-focused business continues to use the same names as the commercial brands, including "Tobii Dynavox" (comprehensive communication solutions), "Acapela group" (synthetic voice solutions) and "Rehadapt" (mounting solutions).
The early phase and very low penetration of our market indicate substantial long-term potential. The vast majority of people who need assistive communication are unaware of, or do not have access to, information about the solutions we and our industry peers offer. Our strong solutions offering, and our dedicated employees are additional key success factors for the future. In summary, I remain optimistic about both the second half of the year and the longer term.
Fredrik Ruben, CEO
Webcast:
Today at 9:00 a.m. CEST, Dynavox Group will host a webcast presentation for media, analysts and investors. If you want to attend the webcast click the following link. The year-end report and a recording of the webcast will be available here after the webcast.
This information is inside information that Dynavox Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.30 CEST on July 18, 2024.
Contact
Linda Tybring, CFO, Dynavox Group, phone: +46 (0) 7068 14 980, email: linda.tybring@dynavoxgroup.com
About Dynavox Group
Dynavox Group AB (publ) is the parent company for Tobii Dynavox, the global leader in assistive communication. Headquartered in Stockholm, and listed on Nasdaq Stockholm (DYVOX), Dynavox Group, together with its brands has over 700 employees and serves customers in 65+ countries. Tobii Dynavox's custom designed solutions enable people with disabilities such as cerebral palsy, ALS, autism and spinal cord injury to communicate with a voice of their own, develop literacy skills and live more independently. To date, hundreds of thousands of people worldwide have benefited from our integrated solutions, which include hardware, software, clinically developed language systems, mounting solutions, training, and dedicated support. We offer extensive funding expertise to facilitate funding for as many people as possible. As voice and motor impairments are common among our users, our solutions are accessed via alternative methods, such as eye gaze or touch screen. Using AI-based speech synthesis, we offer users a personalized voice identity in over 30 languages, for children and adults. For more information, please visit the Dynavox Group website: www.dynavoxgroup.com
