GOMspace - Slow start to a back-end loaded FY’21

Q1’21 negatively impacted by component shortage FY’21 guidance reiterated, with strong order backlog Fair value range reiterated at SEK 11-54 Accruals, component shortage and project re-evaluation GomSpace reported Q1’21 sales of SEK 35m (ABGSCe SEK 52m, FactSet cons. SEK 49m), corresponding to a 13% decline. This is primarily because revenue recognition happens when projects are delivered: with many projects being delivered in Q4’20 and a component shortage negatively impacting some deliveries, Q1’21 was a slow start to FY’21. We understand from management that the low gross margin of 3% in Q1’21 was primarily due to some of the project being delivered in Q1’21, having been re-evaluation of the required engineering hours needed.

GomSpace used more hours but received the same amount of revenues, diluting the margin. Strong order backlog provides confidence for FY’21e While Q1’21 was a slow start reporting-wise, we have seen that GomSpace is continuing to build up its order book. The orders received in Q1’21 were SEK 24m, up 29% y-o-y.

These are orders solely received in Q1 (ending 31 March) and do not include the Unseen Labs order received in April, worth SEK 35. 5m. In total, we estimate GomSpace’s current order backlog to be SEK ~226m (SEK 190m at 31 March + Unseen Labs of SEK 35.

5m). With reported Q1 revenues of SEK 35m and a strong order backlog of ~SEK 226m, we continue to see a strong case for a FY’21 guidance upgrade, and estimate FY’21 revenues of SEK 245m (cons. 231m) vs.

guidance of SEK 210m-235m. Fair value range intact We slightly adjust our estimates to account for the slow start of the year, a slightly diluted gross margin for FY’21, a component shortage, and lower R&D costs for FY’21 than we initially expected. We reiterate our scenario-based fair value range of SEK 11-54.