Otovo’s third quarter results for 2024 are released today. Here are the highlights:
- Portfolio sale term sheet signed
- Inverts cash flow dynamics from outflows (investments) to inflows (forward flow sales)
- Releases cash
- Creates one-off gain in Q1
- Cost programme on track
- Reduces personnel cost and opex by NOK 200-225m annually
- Takes down cash burn, aligns with profitability at low sales levels
- Simplifies company around the Madrid hub
- Customer acquisition in transition
- Improved accuracy and cost in performance marketing
- Expanded partnerships, notably in the mobility direction
- Scaling up new sales methodology allowing more conversion per incoming interest
- Markets remain challenging, commercial momentum affected by reorganization
- Otovo lost output and efficiency in Q3 as layoffs and restructuring hit sales and throughput metrics
- Market outlook in Europe is challenging for the rest of the year, Otovo believes in uptick in sales as consumer macro improves.
- Hardware and leasing shares expected up in coming quarters
Main takeaways
- Portfolio sale frees up cash and flips cash flow from investment to inflow
- Cost structure reset and adjusted for 2025
- Customer acquisition improvements improve odds in a market that remains challenging
- Short term fluctuations to be expected while medium term position is vastly improved
Please find attached the quarterly report. The presentation will be held by Andreas Thorsheim (CEO) and Petter Ulset (CFO) on webcast at 09:00 October 24th.