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Smart Eye Q2 2024: Soft Q2 but strong outlook - Redeye

Redeye concludes that Q2 came in softer than Redeye had estimated, both in terms of lower sales and higher costs. However, license revenues is confirmed to have a strong ramp-up ahead (confirmed by a 25% q/q increase in car models in production), and part of the cost increase appears to be of temporary nature. As such, Redeye believes the somewhat soft Q2 numbers to be countered with a streak of high-growth quarters and that break even will be reached during Q1 next year. Redeye expects to lower its short-term and raise cost estimates somewhat. As such, Redeye expects to only make a minor downward adjustment to its fair value range.

Redeye concludes that Q2 came in softer than Redeye had estimated, both in terms of lower sales and higher costs. However, license revenues is confirmed to have a strong ramp-up ahead (confirmed by a 25% q/q increase in car models in production), and part of the cost increase appears to be of temporary nature. As such, Redeye believes the somewhat soft Q2 numbers to be countered with a streak of high-growth quarters and that break even will be reached during Q1 next year. Redeye expects to lower its short-term and raise cost estimates somewhat. As such, Redeye expects to only make a minor downward adjustment to its fair value range.
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