Gomspace: Better Q1 but pandemic likely to result in order delays – Danske Bank
Slightly better Q1 than expected. Revenues were SEK40m (+35% y/y) and EBIT was SEK-8. 5m (was SEK-27. 7m in Q1 19).
The order intake of SEK18m was lower than management had expected but GomSpace reiterated its SEK160-185m 2020 revenue guidance. We attribute the maintained guidance to the fact that 22-25% has already been booked in Q1, with an order backlog of SEK140m remaining and the fact that the European Space Agency is the largest customer. We estimate SEK178m in 2020 revenue.
While GomSpace removed its 2023 revenue target of SEK1. 5bn, it kept the target of positive operational cash flow. We believe this to be a wise approach given the current pandemic.
We note that GomSpace has been able to slow the cash outflow considerably over the past quarters, mainly through reducing the headcount to c. 130 by end of Q1, down from c. 200 one year ago.
GomSpace ended Q1 with SEK120m in cash, which we estimate to be enough, given that we estimate the 2020 order book will be delivered as planned.
