Dynavox Group AB (publ) today announced its results for the fourth quarter and year-end 2024.
Comment from the Dynavox Group CEO Fredrik Ruben:
We delivered our strongest quarter ever, as our business continues to show growth in both revenue and profit. This is in line with our long-term goals of helping more people with disabilities to communicate, while generating good revenue growth and steadily improving operating margins. Both the short-term and long-term potential continue to be substantial, given the low global penetration of assistive communication solutions. By investing in raising awareness of assistive communication, we can positively impact future growth and our community.
QUARTER OCTOBER - DECEMBER 2024
- Revenue grew 24% to SEK 585 million (473). The currency adjusted growth was 22%.
- Gross margin was 70% (69).
- Operating profit totaled SEK 83 million (56), corresponding to an operating margin of 14.2% (11.9).
- Cash flow after continuous investments was SEK 39 million (63).
- Basic earnings per share were SEK 0.51 (0.43) and SEK 0.51 (0.42) after dilution.
PERIOD JANUARY - DECEMBER 2024
- Revenue grew 22% to SEK 1,972 million (1,613). The currency adjusted growth was 23%.
- Gross margin was 69% (68).
- Operating profit totaled SEK 229 million (155), corresponding to an operating margin of 11.6% (9.6).
- Cash flow after continuous investments was SEK 99 million (145).
- Basic earnings per share totaled SEK 1.39 (0.99) before dilution and SEK 1.37 (0.98) after dilution.
- The Board of Directors proposes to the Annual General Meeting that no dividend should be paid for fiscal year 2024.grew 22% to SEK 1,387 million (1,141). The currency adjusted growth was 23%.
SIGNIFICANT EVENTS DURING THE QUARTER
- Dynavox Group AB completed on October 1st the previously announced acquisition of the reselling partner Link Assistive in Australia and New Zealand.
- Dynavox Group announced strategic changes to the Product & Development organization on November 12.
COMMENTS FROM THE CEO:
We delivered our strongest quarter ever, as our business continues to show growth in both revenue and profit. This is in line with our long-term goals of helping more people with disabilities to communicate, while generating good revenue growth and steadily improving operating margins. Both the short-term and long-term potential continue to be substantial, given the low global penetration of assistive communication solutions. By investing in raising awareness of assistive communication, we can positively impact future growth and our community
Sales growth in local currencies was 22% for the quarter. Our September product launches continued to generate a highly favorable response in the market, with the bulk of orders, originally slated for recognition as revenue in the third quarter, delivered before the close of the year. The fourth quarter is historically our strongest from a seasonal perspective and this pattern was also evident in 2024. Revenue grew by 23% in local currency over the full year 2024.
During the quarter, we saw strong growth across all regions and user categories, along with a solid increase in new prescriptions. The fastest-growing user group continues to be those utilizing our symbol-based touch solutions, particularly children and young people with autism.
We continue to invest in sales capacity and internal systems to further enhance the scalability of our business. The performance trend shows that these efforts are delivering results. Operating profit grew by almost 50% and the operating margin increased 2.3 percentage points year-on-year to 14.2%. Ongoing growth consistent with our goals, combined with the advantages of scale, positions us well to improve our operating margin toward our long-term goal of achieving and exceeding 15% on an annual basis.
The consolidation of our product development organization, announced in November, is progressing according to plan. By focusing these efforts at our Stockholm headquarters, we enhance our innovation capacity while also improving our ability to provide hardware and software that are more seamlessly integrated and better aligned with the entire customer journey. Creating a centralized hub for product development enables us to drive market penetration and strategic innovation, while also more effectively enhancing customer value.
In early October we finalized the acquisition of Link Assistive, our reseller partner in Australia and New Zealand. Hereby we transform these markets to fully align with our organization, enabling us to better assist individuals with disabilities in achieving effective communication. Acquisitions are a key component of our strategy for profitable growth, especially as a means of achieving forward integration in the value chain and building closer customer relationships in each local market. Purchasing established reseller partners has clearly proven to be a winning formula for taking a successful local market to the next level.
We are closely monitoring the announced policy changes in our largest individual market, the US. The situation is expected to continue to be fluid. However, at this point we have no indications of any material impact on results, either negative or positive.
Overall, we look to the future with confidence. Only a fraction of people who need assistive communication solutions are aware of or have access to information about the solutions offered by us or our industry peers. We are firmly committed to improving this situation, which also represents significant potential for our long-term growth and enables us to make a difference for an increasing number of individuals.
Fredrik Ruben, CEO
Webcast:
Today at 9:00 a.m. CET, 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 CET on February 5, 2025.
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 800 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
