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Scibase Q4’23: Impressive gross margin while sales came in softer - Redeye

Redeye saw a Q4 report showing sales below our estimates, with a total growth of 16% for the quarter. Costs were higher than expected again, mainly driven by the marketing efforts that continue in the US. The gross margin was higher than expected at 73.5%. Adjusted for fx effects, it was still higher than expected at 72% vs. our estimate of 66%. The EBIT result was SEK -15.7m vs. our estimate of -11.7m; the higher marketing costs and R&D mostly drove the deviation. Growth continues excellently in Germany, while US sales have also shown good growth, although at low absolute levels.

Redeye saw a Q4 report showing sales below our estimates, with a total growth of 16% for the quarter. Costs were higher than expected again, mainly driven by the marketing efforts that continue in the US. The gross margin was higher than expected at 73.5%. Adjusted for fx effects, it was still higher than expected at 72% vs. our estimate of 66%. The EBIT result was SEK -15.7m vs. our estimate of -11.7m; the higher marketing costs and R&D mostly drove the deviation. Growth continues excellently in Germany, while US sales have also shown good growth, although at low absolute levels.
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