Earnings call transcript: Dynavox Group reports strong Q4 2024 growth

Dynavox Group has reported robust financial performance for the fourth quarter of 2024, showcasing significant revenue growth and an increase in earnings per share. The company’s revenue reached SEK 585 million, representing a 22% year-over-year increase, while the earnings per share surged by 90% for the quarter. The positive results reflect strong market demand and successful product innovation. The stock price of Tobii Dynavox AB saw a 0.69% rise, closing at SEK 72.9. This performance has contributed to an impressive 72.34% return over the past year, according to InvestingPro data, which also reveals the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.

Key Takeaways

• Revenue increased by 22% year-over-year in Q4 2024.
• Earnings per share grew by 90% in the same period.
• The company launched new products, enhancing its competitive position.
• Strong growth was observed in North America and Europe.
• The company remains focused on AI integration and product development.

Company Performance

Dynavox Group demonstrated impressive performance in Q4 2024, with revenue and earnings both showing substantial growth. The company continues to capitalize on its leadership in the communication aid solutions market, experiencing strong demand across its product lines. The strategic focus on communication solutions for autism and disability markets has contributed to the company’s robust growth trajectory. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.22, with particularly strong momentum in price performance. Subscribers can access 11 additional ProTips and comprehensive financial metrics through the Pro Research Report.

Financial Highlights

• Revenue: SEK 585 million, up 22% year-over-year.
• Full Year Revenue: SEK 1.97 billion, a 22% increase from the previous year.
• Organic Growth: 21% in Q4, 18% for the full year.
• Gross Margin: 70% in Q4, an increase of 1.2 percentage points.
• EBIT: SEK 83 million in Q4, a 47% increase.
• Full Year EBIT: SEK 229 million, with a margin improvement to 11.6% from 9.6%.
• Earnings per share: Increased by 90% in Q4, 40% for the full year.

Outlook & Guidance

Dynavox Group is optimistic about its future growth prospects. The company aims for annual revenue growth of 20% over the next 3-4 years, with a target EBIT margin exceeding 15%. The focus will remain on expanding sales, marketing, and technology investments. No dividend has been proposed for 2024, as the company prioritizes reinvestment to sustain its growth momentum. Trading at a P/E ratio of 46.6 and showing a revenue growth of 23.76% in the last twelve months, InvestingPro’s Fair Value analysis suggests the stock is slightly overvalued at current levels.

Executive Commentary

Fredrik Gruben, CEO of Dynavox Group, emphasized the company’s mission-driven approach: "We contribute to this via focusing on our mission, which reads to empower people with disabilities to do what they once did or never thought possible." He also highlighted the untapped potential in the market: "The market that we service is hugely underserved."

Risks and Challenges

• Potential changes in US healthcare policy could impact revenue streams.
• Supply chain disruptions may affect product availability and cost.
• Market saturation in developed regions could slow growth.
• Economic downturns could reduce consumer and insurance spending.
• Increased competition in the communication aid space may pressure margins.

Q&A

During the earnings call, analysts inquired about the company’s AI development strategy and its implications for future products. Executives expressed confidence in the ongoing integration of AI to enhance product offerings. Additionally, questions regarding the impact of US healthcare policy changes were addressed, with minimal concerns noted by the management.

Full transcript - Tobii Dynavox AB (DYVOX) Q4 2024:

Fredrik Gruben, CEO, Dynavox Group: Alright. Good morning, everyone, and welcome to this earnings call where we will mainly cover the fourth quarter twenty twenty four summarizing our business in October, November and December. And we will of course comment regarding the full year of 2024. And click for the next slide. My name is Freddie Gruben.

I am the CEO of Dynavox Group.

Lida Teiring, CFO, Dynavox Group: And I’m Lida Teiring. I’m the CFO of Dynavox Group and I will cover the financials at the end.

Fredrik Gruben, CEO, Dynavox Group: Great. For those of you who have participated in these calls before, you will be familiar with that. We will start by doing a quick recap about what Dynavox Group is about and then we will summarize the main takeaways from the quarter and the year. We will dive deeper into the financials and thereafter we will have a Q and A session. As participants here, you can submit your questions during this live sessions here in the chat function in Teams.

And we of course always welcome offline questions if you send them by email to Linda’s email address, which is linda. Tibringdinavoxgroup dot com. So, but again, starting with a brief overview of Dynavox Group. First and foremost, it’s important to reiterate our mission and our vision, which I know is very dear, not only to the roughly 800 plus colleagues around the world, but also to our ecosystem of partners and investors. And our vision is a world where everyone can communicate.

We contribute to this via focusing on our mission, which reads to empower people with disabilities to do what they once did or never thought possible. This also summarizes two of our main user stories. If we start with do what you once did, that may refer to the person who led a normal life until a diagnosis such as ALS, which rendered her unable to control the body or communicate like before. The other story, the never thought possible can refer to the child diagnosed at an early age with a condition such as autism, cerebral palsy, and more, where thanks to our solutions, he can do much more than the world around him ever thought possible. We have a picture here to the right on Christopher or Chris.

He’s from California in The US and he’s one of our amazing young users diagnosed with nonverbal autism and he’s a super good example of this. The market that we service is hugely underserved. Estimating some fifty million people have a condition so grave they cannot communicate unless they have a solution like ours. Every year, about two million people are being diagnosed, and yet we estimate that only some two percent of those are actually being helped and the rest remain silent. The main reason for this spells lack of awareness.

Among the professionals and the prescribers that are tasked to assist with these users and combine them with the poor healthcare reimbursement system around the world. We operate with a global footprint. So today, some three quarters of our business stems out of The US and largely because of a reasonably well functioning funding system established some twenty, thirty years ago. But our products are actually sold in about 65 markets around the world, of which The US, Canada, UK, Ireland, Denmark, Sweden, Norway, and now most recently adding Australia and New Zealand are markets where we sell directly, while the other markets are served by a network of 100 plus reseller partners. Our own staff is distributed in a similar way as the revenue.

That means that some 70 plus percent of our staff are also based in North America with our US headquarters in Pittsburgh, in Pennsylvania. And then our second largest office is our headquarters here in Stockholm, but we have branch offices in several European countries as well as in Suzhou in China. And as of today, we are over 800 employees in total. With prior acquisitions, we established or increased our presence specifically in Belgium, France, Germany, Ireland, Denmark, and most recently done in Australia and New Zealand. Yeah, but I’ll come back to that.

We provide what we call comprehensive solutions and it’s a portfolio that ranges from, if you go on the left on this picture, the content and the language systems such as the world leading library of communication symbols, they’re called PCS, and the leading solutions of off the shelf or custom made synthetic voices of the highest quality and with a large diversity in terms of languages, ages, and ethnicities. Moving on, we have highly sophisticated communication software which is tailored to the type of user and that can of course vary greatly based on the need of that user. Moving on, we develop and design devices with cutting edge technology and medically certified durability that includes communication aids that you can control via eye tracking or accessories such as the rehab app mounts. We have also a services portfolio to help our users through the complexity of obtaining and getting funding for the solutions. Then last but not least, we’re there to help users, therapists, caregivers through our global teams of support resources.

We operate this model globally and it’s important to note that each piece here is critically important and also significant differentiator for us making us absolutely unique. Our go to market model is predominantly as prescribed age, which then means that some 90% of our revenue comes from either public or private insurance providers. This also means that we have a solid paying customer base, but also we’ve always been resilient towards changes in the overall economic climate. All right. But now we will go back on focusing on the main topic of today, namely our earnings report for the fourth quarter twenty twenty four.

Looking at the highlights, we had another solid quarter when it comes to revenue growth. The growth compared to the same quarter previous year sums up to 22% if we adjust for a two percentage point positive currency effect. This basically continues a trend that we have now seen for the past ten consecutive quarters. The products that we launched in September continue to generate highly favorable response in the market. With the bulk of orders that originally were slated for recognition as revenue in the third quarter, they were also delivered now before the end of the year in the fourth quarter.

We continue to improve our portfolio of products and services and the latest set of launches solidifies our already strong offering. Our work to improve the awareness and competence continues specifically among prescribers and professionals in our space. We see that the North American market continues to show strong growth and it’s by far our largest and most influential market, both for us and for our industry. But we also see strong momentum among the younger user base to continue. Often that is children with autism that rely on our simple communication solutions and in particular a software called the TD Snap, and the non eye tracking touch controlled communication devices portfolio that supports these user groups.

Our OPEX levels increase, but this is a consequence of investment to secure future growth and building the foundation for a much bigger company in the future. We continue to invest in our staff, mainly within sales and marketing, but also in backend systems and tools. We also continue to improve our profitability at an even faster pace compared to revenue and our operating profits increased by 47% in the quarter. On October 1, we closed the acquisition of Link Assistive, which is our long standing reseller partner in Australia and New Zealand. In November, we announced that we will consolidate our product development organization, which includes product management, hardware, software development, etc.

We focus these efforts to our Stockholm headquarters. We enhance our innovation capacity while also improving the ability to provide hardware and software that is much more seamlessly integrated and better aligned with the entire customer journey. If we then instead look at the full year 2024, we can conclude that it was solid regarding our top line growth. In local currencies, the growth was 23%. Our profitability improved significantly in the full year.

EBIT grew by 48% and earnings per share grew by 40%. So this really to me proves the case that our business is now really starting to scale quite well. The fundamental factor behind this is again, the hugely underserved potential in the market that we address. Our attractive customer offering, which we continue to strengthen through significant product launches, was also a key growth driver as well as successful acquisitions such as the one in Australia and New Zealand, Link Assistive. One more factor behind our growth, but also as an important factor to ensure that growth is sustainable, are our continued and significant investments within our sales and marketing organizations, but also in systems, tools, and processes to secure future scaling.

Now, I hand over to you Linda to take us deeper into the financials.

Lida Teiring, CFO, Dynavox Group: Thank you, Fredrik. Let’s talk some numbers. So revenue for the quarter came in at SEK $585,000,000, a 22% year on year growth after adjusting for currency effect. M and A contributed with 1%, hence the organic growth was a solid 21%. Continuing a strong trend from previous ten quarter strategic set, also the majority of our pushed orders in Q3 was delivered in the fourth quarter.

North America continues its strong growth, but it also remains the case for Europe and rest of the world. As we’ve talked about in prior quarters, we continue to see growth not just across regions, product and user groups, we continue to see that the fastest growth globally is within the autism customer group. The gross margin ended up at 70%, an increase of 1.2 percentage point. The margin benefited primarily from improved purchase price, but also some negative impact on increased freight costs. EBIT for the quarter increased by 47% to SE83 million or 14.2% versus 11.9% last year.

Our OpEx increased by organically 22. The OpEx increase mainly relates to what we already talked about. We added some 154 FTUs including acquisitions. Majority of this was added in the sales and marketing organization in addition to the salary adjustment that came into force April 1. We continue to invest in systems and tools to manage the growing business and setting up us to being able to handle a business much larger than it is today.

These investments contributed approximately to SEK 9,000,000 in the quarter. Operating expenses was affected by non recurring cost of approximately 2,000,000, mainly related to restructuring cost. The cost for long term incentive program in the quarter actually decreased with 1,000,000. Net R and D cost increased by 12,000,000 SEK, and if we look at the earnings per share, it increased by 90% from 0.43 per share to 0.51 per share. So the full year 2024 financials.

Revenue for the year came in at SEK1.97 billion, a 22% year on year growth. Excluding currency effect, it was 23%. Acquisition contributed 4%, and the organic growth was a solid 18%. North America contributed its strong growth, Europe and the rest of the world also grew strongly. As already mentioned in the quarter, we see growth across the board, not just regions, but also product and user group.

We also see a trend where markets where we go direct grew stronger. Gross margin ended up at 69%, an improvement of close to one percentage point. The margin benefited with improved purchase price, at the same time increased freight cost had some negative impact. EBIT for 2024 was $229,000,000 SEK corresponding to a margin of 11.6% versus 9.6% last year. Our OpEx increased organically with 18% versus last year.

The OpEx increase mainly relates to staff increases in sales and marketing organization and salary adjustment that came into force April 1. Investment in tools and systems to build scalability contributed to the cost increase of 16,000,000 SEK. Cost for our long term incentive program increased by 11,000,000 SEK. And operating expenses that was affected by non recurring costs of approximately 8,000,000 related to restructuring costs and acquisitions activities. The net impact of R and D spend increased by 20,000,000 SEK.

This is mainly related to both the more normalized development cost, but also increased depreciation. I think we are very happy with our revenue growth and even stronger improvement of our profitability with an EBIT increase of almost 50% and growing earnings per share by 40%, a real proof that how our business skills went revenue growth. At the same time, we managed to continue to invest for future growth. For the quarter, cash flow after continuous investment was positive with SEK39 million negatively impacted by increased inventory levels and higher accounts receivable. Specifically revenue came in late in the quarter which then increased our accounts receivables.

Cash at hand ended up at end of the quarter was 133,000,000 SEK, net debt $657,000,000 SEK, The total used credit facility and term loan at the end of the quarter was $694,000,000 SEK. The net debt over the last twelve months EBITDA was 1.5 times. So Frederick, should we

Fredrik Gruben, CEO, Dynavox Group: complete this? Yes, Linda. Thank you. So before we open up for questions, I’d like to reiterate main takeaways from the fourth quarter as well as the full year of 2024. We continue to show solid growth and that is a trend that started early in the spring of twenty twenty two.

We grew revenue by 22% adjusted for currency and the equivalent full year growth was 23%. North America continues to show strong growth, but it’s also the case for Europe and rest of the world. The strong momentum among the younger user base continues, and that’s mainly among children and younger users with autism. Our profitability continues to move upwards with an organization that scales better day by day. EBIT increased by almost 50% during the quarter as well as for the full year.

The previously acquired companies continue to contribute well and they’re developing favorably. As from October 1, we added Australia and New Zealand as countries that we call home. Given the continued and sustainable growth, we continue our investment in systems, tools, preparing us for being able to successfully manage a future business that is much bigger than it is today. Our financial targets are expressed with a time horizon of about three to four years. The first target says that on average, we want to grow our revenue by 20% per year adjusted for currency effects, including contributions from acquisitions.

In local currencies, the full year growth sums up to 23%, which means that we have found a revenue growth momentum to build on. The market again with service remains hugely underserved and with the example of growth levers such as sales teams expansion, adding direct markets and operational excellence, we continue to build on our growth journey. The second target is to deliver an EBIT margin that reaches and exceeds 15%. We have proven to build strong growth with incremental improvements in profitability. We need to continue to invest in future growth with improvements in scale.

An example of this is to continue to grow through better educated prescribers that become more self sufficient and of course satisfied customers lead to higher degree of replacement sales. The recipe for this is rather simple. I mean, continue our revenue growth, high and stable gross margin, and then of course an operating expenses that increase at a lower pace than revenue growth. And as a consequence of this, we see good opportunity for future leveraging how revenue growth translates to reaching and exceeding an EBIT margin of 15%. Lastly, we expressed, this is about a year ago, a dividends policy, where if you look at the company DynaVault Group, we have an attractive cash flow profile and given growth opportunities, we need to maintain in a capital structure that enables strategic flexibility to pursue growth investments, including acquisitions.

But it’s still expected that over time, we will generate excess cash and our policies therefore to distribute at least 40% of available net profits to shareholders via either dividends, share repurchase or similar programs when so allows and deemed the right prioritization. And as you can see, we are well underway to reach a position to pay dividends. However, for the annual general meeting in May of this year twenty twenty five, the board of directors proposes that no dividend is paid related to the fiscal year of 2024. All right. Now I will step to the left and I will invite Christian Hall over to the microphone to help us with questions from the audience.

Hey, Christian.

Christian Hall, Moderator/Question Handler, Dynavox Group: Hey. Hello. Okay. So we have a number of questions and we will start with one from Matt Svittinger at Red Eye. What is your view on the risks related to the new US administration and its unpredictability as regards to healthcare in general?

So if you could elaborate a bit on the risks there.

Fredrik Gruben, CEO, Dynavox Group: Sure. Hi, Matt. Yes, I think the situation in The US regarding policies and the new administration is fluid. We are of course closely monitoring this day by day exactly on new statements, etc. At this point I think we can split it up in, you know, the risk or the concept of tariffs.

And there we do believe that we have a pretty good handle. Remember, we sell products with a very high gross margin, so tariffs on the components etc. Doesn’t really affect us all that much. The other topic is of course the changes to administration etc. Here I think we’re closely monitoring what people say but then actions etcetera is probably going to be more based on what actually happens, and that remains to be seen.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay, so let’s move on to Daniel Juleberg from Handelsbanken. So regarding AI development, of course, it’s super fast. How do you view and how can you secure to be in the lead? Or do you plan to collaborate with other partners?

Fredrik Gruben, CEO, Dynavox Group: Yeah, AI is the topic on everyone’s lips these days. AI is nothing new to us. We are a fairly technologically savvy company as such. That means that AI has had a profound and important element in our product development ranging from synthetic voices to how we develop software and hardware. I believe there we’re already using it and it’s an integral element of how we run this company.

The second perspective on AI is operational excellence and we talked a lot about how do we scale this company and here we see fantastic opportunities to use AI in making sure that we run the company faster, smoother, that we, as someone said, work smarter not harder in a sense. But we believe that the current initiatives we’re doing on artificial intelligence machine learning and large language models has actually a fairly big impact already today. The last one is of course how does AI impact our customers and our products out in the market? This is a longer topic. We’re seeing some of the first initiatives both from us and other players how this could potentially play in.

This is a market that is quite slow in adapting new technologies, so I think it remains to be seen whether it will have a significant impact in the future, but trust me, we are on it.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay, and then we have a question from Oscar at ABG. Please cover the OPEX items. R and D OPEX in the profit and loss seems elevated compared to R and D expenses to undover capitalization. Please elaborate on the high selling expenses and the underlying development. And finally, when are the ERP costs expected to fade?

Fredrik Gruben, CEO, Dynavox Group: I hand this with a warm hand to you, Linda. Thank

Lida Teiring, CFO, Dynavox Group: you, Frederic. So let’s start with the R and D expenses. So what we have seen historically, which we also have talked about is that we have had artificially low R and D. We have actually hard time to find people, but now we’re starting to actually onboarding more people into the organization. We’re also investing a lot in our product now, so that’s what we see in the Q4 that was a little bit thick.

And also the impact, some costs related to the transition of the organization from US to Sweden. Selling expenses. Yes. I mean, as we’ve been historically as well, we continue, we see the underlying demand out there and we continue to invest in our sales and marketing organization and that I would say is just according to plan.

Fredrik Gruben, CEO, Dynavox Group: A large portion of the 150 employees we’ve added in the ER are exactly in the sales and marketing organization and we want to continue on that trajectory.

Lida Teiring, CFO, Dynavox Group: Yes. And then the digitalisation and ERP transformation, that is a project that will go on for at least this year. So we are in the middle of it and we hope to be able to gradually roll it out during the coming twelve to eighteen months.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay. And then we have some more questions regarding the R and D from Michael Latsean, Carnegie. How should we think about R and D costs in 2025? Will they remain at the same level as in Q4? Or should we expect an increase?

How are you planning to execute the structural changes to the R and D organization through 2025?

Lida Teiring, CFO, Dynavox Group: So what will happen is of course that we will start to transition and employ people in Stockholm and gradually hand over from The US which will build at some part of the year, we will have actually double organization and of course we will have costs related to one timers that is severance pay and retention. So we will have a bump during 2025 but then going into 2026 this should be balanced and we are back on the same level as we’ve been historically.

Fredrik Gruben, CEO, Dynavox Group: Yeah, so if we look at the announcement we made in November, over time we actually don’t believe that this transition is going to have any impact on our P and L. Okay.

Christian Hall, Moderator/Question Handler, Dynavox Group: And then we have a question from an anonymous asker. No dividend proposed. Should we read this as that you anticipate you will do more M and A in 2025?

Fredrik Gruben, CEO, Dynavox Group: I think it’s a combination, but we have, if you look historically, made a handful of acquisitions in the past. This is also part of our strategy, even though majority of our future growth will actually be anticipated to be organic. So that’s the kind of the politically correct answer I have on that question.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay, and then another question from Oskar at ABG. Any comments to the current demand in general? Please talk about the confidence of delivering 20% growth in 2025.

Fredrik Gruben, CEO, Dynavox Group: We see no changes in demand. We feel that the demand in the market, the appreciation of both existing and new product is solid, so we see no changes, neither drastically accelerated or decreased. We feel confident in our long term projections. But with that said, we also express our targets over a three to four year period, so no changes in confidence from our end.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay. And then a couple of questions regarding revenues in the fourth quarter and how much of revenues came from pushed q q three revenues, roughly? I

Fredrik Gruben, CEO, Dynavox Group: can start. We did express in the third quarter that our then newly launched product, there were some spillover effect where customers who were already in the process of getting one of the then existing products had the choice to basically pick the new product instead and that of course adds a number of weeks or so to the process, which meant that we said that we had a portion of our sales that would happen in Q4. This did happen in Q4 so it materialized. We haven’t exactly defined the size of that, Linda, that you want to go into.

Lida Teiring, CFO, Dynavox Group: We said in Q3, we said it’s a capital percentage point, and majority of that is converted into revenue in Q4.

Fredrik Gruben, CEO, Dynavox Group: Yep.

Christian Hall, Moderator/Question Handler, Dynavox Group: And a further question on that, can you share how much the underlying organic growth was in Q4 and in Q3?

Fredrik Gruben, CEO, Dynavox Group: Perhaps now I need to kind of do quick mathematics in my head. If you combine the growth in Q3 and Q4, I think that there you are at an organic growth in the range of just under 20%, so I think you know let them even out and that is probably the idle speed of how this company is running right now. I

Christian Hall, Moderator/Question Handler, Dynavox Group: agree. Okay. Couple of maybe more detailed questions from Daniel Luebagg. You had a change in your effective tax level. Do you expect what are your changes to your effective tax level going forward due to the higher taxation in The US.

Can you share your best view on the effective tax rate level we should use going coming quarters?

Lida Teiring, CFO, Dynavox Group: Yeah. I think the the the bills is I think the problem that we have in Q4 is that we wrote that in the report as well, that we needed to do a benchmark and having the transfer pricing actually at a higher level in The US which means that we need to do a catch up in Q4. This will then be normalized this year and estimated to be around 20% that we have had historically as

Fredrik Gruben, CEO, Dynavox Group: well. So there’s actually not an actual change in tax level, it’s more on transfer pricing. With that said, we’re of course monitoring closely all kinds of policy changes including

Lida Teiring, CFO, Dynavox Group: And this is one as well, that is on the radar.

Christian Hall, Moderator/Question Handler, Dynavox Group: Yeah. And regarding the loan situation, can you help us out a bit on your loan situation with regards to duration or how to think about quarterly mortgages and interest rates going forward?

Lida Teiring, CFO, Dynavox Group: At the moment, I mean, the interest rate is following and based on silver, so you can follow that. When it comes to our amortization, we are not amortizing at the moment. It’s actually no need for that.

Christian Hall, Moderator/Question Handler, Dynavox Group: And a question from Oscar at ABG. Elaborate on the working capital build up release expected in Q1 and or in 2025?

Lida Teiring, CFO, Dynavox Group: What we expected, some release going forward, we had unusually high both inventory level and accounts receivable. And this relates both to the demand when it comes to our product and when it comes to accounts receivable we saw the higher revenue came at the end of the quarter, which means we will get the pelmen later on in 2025.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay, and regarding seasonality, should we expect normal seasonality going into Q1 and Q2?

Fredrik Gruben, CEO, Dynavox Group: Yeah, I mean it’s we can only look at the historics. I think a really good predictor of the future is to look at the seasonality of the past. This is a fairly predictable company when it comes to seasonality and the underlying reasons are actually quite simple. We have a business that relies to 90% on payments from certain kinds of either private or public insurance providers. In many countries and in particular in The US there is a little bit of a race to the finish where both, well predominantly the user and the one who’s receiving the device, they have a huge incentive of getting their device not only funded but also delivered before the end of the year.

Because on January 1, the so called co pays where they have to pay some part of the products out of pocket resets. So we have seen that historically, we have no assumptions that our go to market or anything else is going to change in the future.

Lida Teiring, CFO, Dynavox Group: But we could also then say that if Q4 is our strongest quarter, Q1 is not as strong from a profitability perspective. We go in the year with the OpEx as we had in Q4, but then our revenue are not as high.

Fredrik Gruben, CEO, Dynavox Group: Yeah. It’s very much a staircase pattern. Q1 is weaker, Q2 is a little bit better, Q3 a little bit better, and then Q4 is the best.

Christian Hall, Moderator/Question Handler, Dynavox Group: Yeah. And from Mikael Sian, some questions regarding your sales activity. Can you provide more insights into your sales activity? Specifically, how many prescribers typically prescribe more than one or more than four devices per year? Has this number been increasing and what does that indicate about the adoption trends?

Fredrik Gruben, CEO, Dynavox Group: I don’t have a hard number to provide Mikael, but I can say yes, the number of high value evaluators as we call them internally, meaning prescribers that prescribe four or more units per year is increasing, but it’s still a number that we want to significantly increase and again one of the reasons why we believe in the future and we believe also in the scaling effect because obviously the selling expenses associated with the prescriber that prescribes her first or second unit versus the one who prescribes their twentieth or thirtieth is of course significantly lower.

Christian Hall, Moderator/Question Handler, Dynavox Group: And another question from Michael. What are you seeing in terms of reimbursement activity and your pipeline for orders? Based on current trends, what does this suggest about growth potential in the first half of twenty twenty five?

Fredrik Gruben, CEO, Dynavox Group: I think I write about that in the CEO text of the report. We see continuous and in the same way good inflow of new prescriptions etcetera. So there’s no change in that trend.

Christian Hall, Moderator/Question Handler, Dynavox Group: Another question from Daniel Ljubag. The new product launch is made in Q4, I think it was in Q3, right? In Q3, yes. Is it correct that they were launched first in The US and a quarter later in Europe and the rest of the world?

Fredrik Gruben, CEO, Dynavox Group: No. They were launched on the very same day in the entire world in Q3.

Christian Hall, Moderator/Question Handler, Dynavox Group: And the question from Jacob Lemke. On other countries, a bit of a weaker quarter if factoring in the acquisition in Australia. What can you say there? And how has the first time with the acquisition been?

Fredrik Gruben, CEO, Dynavox Group: So I’m not sure I agree that it’s weaker. I mean we have some some kind of, there’s a little bit of a race in our company between the various regions and I would say that they’re over time running equally fast. When it comes to welcoming our new friends in Link Assistive, all in all good. It’s a company which is not super big in that sense and it’s also a company that we’ve been working super tight together with for well over a decade. So that means that integration is perhaps less dramatic.

We know each other quite well from before. With that said it’s an integration in terms of finance reporting, IT system etc, but I feel quite confident in how that works out and that’s a very typical example of an acquisition that we do which also means that we have some prior knowledge and and routines in doing this.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay, and a further question from Daniel Huber regarding the percentage, the how large percentage of the R and D engineers do you plan to hire in Stockholm is already signed up?

Fredrik Gruben, CEO, Dynavox Group: That’s a good question. It’s actually a number we don’t have, I should say, but this is a process that was accelerated during the fourth quarter and I think now we’re in execution mode. The only thing I can say is that it looks quite promising and it’s evident so that from an employer brand etcetera that we have really made some good progress over the past couple of years. So I have a high confidence in it but I have no numbers to share.

Christian Hall, Moderator/Question Handler, Dynavox Group: And a question from an anonymous regarding the outlook for ’25. You managed to deliver more or less at your increased growth target for ’24. What would you say are the main uncertainties to achieve at this level for ’25?

Fredrik Gruben, CEO, Dynavox Group: So I wouldn’t say that that is particularly a uncertainty for 2025. And the market we’re looking at is very underserved. We are also the trailblazer here. We are the ones that sets the standards etcetera as the biggest player in the industry. With that there might also be both bumps and tailwind on that road.

The big pain that I still feel on a personal level, I know it’s shagging the organization, is that the vast majority of people out here, rich or poor, close or far away, that has a need for a communication need, aid, they’re not even informed about it. And their prescribers or their therapies that they work with have never been properly educated on this. That’s the pain. I think it’s evident to see that we’ve found the recipe and our recipe which says training is selling. We don’t go out there and push products.

Our go to market model is very much about educating the prescribers in this space about how to work with their patient efficiently. That seems to work And hence, our plan is to, in a controlled way, continue to add those resources out on the ground to continue to build awareness. That’s,

Lida Teiring, CFO, Dynavox Group: it’s clear. It’s clear.

Fredrik Gruben, CEO, Dynavox Group: That’s what keeps us awake, but that’s also partly what we see the success in the past.

Christian Hall, Moderator/Question Handler, Dynavox Group: Okay, and that was the final question.

Fredrik Gruben, CEO, Dynavox Group: Fantastic. That was fun with so much questions. Again, don’t hesitate to reach out to us if you need more details. We’re hence closing this session. Look forward to seeing you back again on April 25 where we will summarize our business in the first quarter of twenty twenty five.

Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.