Dynavox Group AB (publ) today announced its results for the first quarter 2025.
Comment from the Dynavox Group CEO Fredrik Ruben:
During the first quarter, typically our slowest in terms of volume, we experienced strong growth across all geographies and user groups. The demand for our solutions remains high, proving the solidity of our underlying business. Our operating profit grew at the same pace as revenue, despite significant planned investments and non-recurring costs. The recent uncertainties due to US tariffs and policy changes had no material impact on the business, but the situation is monitored closely.
JANUARY - MARCH 2025
- Revenue grew 36% to SEK 581 million (428). The currency adjusted growth was 34%.
- Gross margin was 68% (68).
- Operating profit totaled SEK 43 million (32), corresponding to an operating margin of 7.3% (7.6).
- Cash flow after continuous investments was SEK 27 million (10).
- Basic earnings per share were SEK 0.23 (0.10) and SEK 0.22 (0.10) after dilution.
SIGNIFICANT EVENTS DURING THE QUARTER
- Dynavox Group expanded the credit facility at Swedbank by SEK 200 million during the quarter.
SIGNIFICANT EVENTS AFTER THE QUARTER
- Dynavox Group's annual report for 2024 was published on April 2, 2025.
- Dynavox Group AB entered into an agreement on April 8 to acquire its French reseller partner Cenomy.
COMMENTS FROM THE CEO:
During the first quarter, typically our slowest in terms of volume, we experienced strong growth across all geographies and user groups. The demand for our solutions remains high, proving the solidity of our underlying business. Our operating profit grew at the same pace as revenue, despite significant planned investments and non-recurring costs. The recent uncertainties due to US tariffs and policy changes had no material impact on the business, but the situation is monitored closely.
Sales growth in local currencies was 34% compared to the same period last year. This exceptionally strong growth is almost on par with the result in Q4 2024, which is traditionally our strongest quarter. Our symbol-based touch solutions, most often used by children and young people with autism, continue to grow at a fast pace.
The operating profit grew by 32% and the operating margin was 7.3% (7.6%). The lower profitability in the quarter is mainly driven by planned investments in scalability related to restructuring within R&D, new internal systems and a negative currency effect. The consolidation of our product development organization to a central development hub in Stock-holm is progressing according to plan, rendering non-recurring costs of 8 MSEK in the quarter. Investment in improved internal systems resulted in a non-recurring cost of 14 MSEK during the quarter. In total, these non-recurring costs lower the EBIT by 22 MSEK or close to 4 percentage points.
We continue to invest in our sales capacity to ensure continued growth and to further enhance the scalability of our business. In the last 12-month period the sales teams have grown by almost 100 new colleagues worldwide. On April 8, we announced the acquisition of the French reselling partner Cenomy and we look forward to welcoming some 20 new colleagues later this year.
Approximately 80% of Dynavox Group's revenue is billed and paid in USD, which means our revenue fluctuates with the SEK/USD exchange rate. However, since the majority of our cost of goods sold (COGS) and approximately 60-70% of our operating expenses (OPEX) are also in USD, this creates a natural hedge against currency fluctuations. Consequently, while our top-line revenue may fluctuate, the impact on EBIT-margin is not significant. In the first quarter, the net negative impact on EBIT was approximately 8 MSEK.
Our overall exposure to import tariffs to the US is limited since the tariffs are based on the cost of the material imported to the US. For our products, the material costs represent some 20% of the retail value. However, more importantly, our products are generally classified as medical certified assistive devices, exempting them from tariffs under the Nairobi Protocol.
As of today, there are no announced changes to policies related to the reimbursement of our products in our largest individual market, the US. However, we are monitoring the situation closely.
Despite the uncertainties in the world surrounding us, I continue to be optimistic about the future. Only a small percentage of people who need assistive communication solutions are aware of, or have access to, the solutions offered by us and our industry peers. We are firmly committed to improving the lives of many more individuals, which also represents significant potential for our long-term growth. This potential combined with our strong underlying business and our fantastic team of almost 1,000 colleagues gives me confidence about the future and our ability as a company to exploit the opportunities and handle the challenges that lie ahead of us.
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 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 April 25, 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 of Tobii Dynavox, the global leader in assistive communication. Headquartered in Stockholm, and listed on Nasdaq Stockholm (DYVOX), Dynavox Group employs over 900 people and serves customers in more than 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
