Equity Research Mindark PE, Q4 2023: Adjusted accounting principles contribute to high net revenues

Today, Mindark PE published its interim report for Q4 2023. Below is a summary of our first impressions of the results including deviations from our forecast made in the latest research update:

• In Q4 2023, net sales increased from 29.1 MSEK to 46.3 MSEK. SEK 11.7 million of net revenues was attributable to adjusted accounting principles. Thus, we see 34.6 MSEK (46.3 minus 11.7) as a more accurate figure for net revenues in Q4 2023.
• Our estimates for net revenues were 27.0 MSEK. The adjusted outcome was thus about 27.8% above our expectations and corresponds to a strong growth of 18.8% on an annual basis.
• Adjusted EBITDA (EBITDA excluding capitalised development costs and the effect of adjusted accounting) increased from SEK 6.4 million to SEK 13.5 million. Our forecast was SEK 7.6 million and the outcome was thus significantly higher than expected. The deviation was mainly attributable to higher-than-expected net revenues but also due to lower than expected external costs, which ended up at SEK 11.8 million. Our forecast for external costs was SEK 14.8 million.
• We also adjust the net result for capitalised development costs and the effect of the adjusted accounting principles. After adjustments, the net profit ended up at about SEK 7.5 million, which is an increase from SEK 1.4 million in Q4 2022, also adjusted for capitalised development costs. Our estimates was SEK 2.5 million.

We intend to publish an updated equity research report on Mindark PE soon. Read our latest research report here.

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