Equity research Teneo AI: Preliminary figures above expectations

On 14 January 2024, Teneo AI (the Company or Teneo) published preliminary figures for the fourth quarter of 2024 and the full year 2024. The Company displayed impressive growth and highlights include the achievement of  two long-term goals; a month of positive cash flow as well as annualized call volumes of over 1 billion.

• The preliminary figure for Net sales in Q4 came in higher than what we had expected at SEK 26.5 million compared to our estimate of SEK 23.9 million. As for the full-year 2024 the corresponding figure was SEK 84.1 million, 2.6% higher than our estimate of SEK 82 million.
• ARR was also higher than estimated, reaching a preliminary SEK 103.9 million, 8.7% higher than our estimate of SEK 95.6 million. The difference was larger when looking at SaaS ARR and SaaS Call Volumes, coming in 16.9% and 16.5% higher than our estimates.
• In terms of the gross margin, the difference was smaller compared to our estimates. The gross margin landed on 80% for Q4 compared to the 79% margin we expected. However, on a positive note, efficiency was higher, with the EBITDA margin landing on -6.4% instead of -18% as we expected, highlighting an improved cost control.

Taken together, we are positively encouraged by the strong performance and growth showcased in the preliminary figures of the fourth quarter. The quarter displays the scalability of the Teneo solution, boosting confidence in that the company will continue to reach its goals, like the SEK 200 million goal for ARR. On the back off the strong data we expect to adjust our model and revise our estimates in conjunction with the release of the full report on the 20 February. Furthermore, we look forward to the new KPIs, like the number of target accounts and potential consolidating partners in the qualified pipeline stage, that will be reported for the first time when the full report for Q4 is released.

Please see our latest update here.

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