• Revenue: SEK 54.8 million, up 7.9% from SEK 50.7 million in Q1 last year.
• Gross Margin: 83.4% for the quarter.
• EBIT: Minus SEK 21 million, including SEK 8 million in one-offs and SEK 6 million in FX headwinds.
• Cash Position: SEK 114 million at the end of the quarter.
• EMEA Market: Largest market, but grew less than usual this quarter.
• USA Market: Gained market share with strong growth.
• Asia Pacific Market: Continued strong growth from small numbers.
• Distributor Sales: Mix of smaller thermal orders and steady growth from smaller distributors globally.
• New Product Launches: Recent product launches accounted for approximately 18% of total revenues in the past year.

• Warning! GuruFocus has detected 2 Warning Signs with FRA:OL0.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Devyser Diagnostics AB (FRA:OL0) reported its second strongest revenue quarter in company history, with SEK 55 million, marking an 8% growth compared to Q1 last year.
• The company achieved a gross margin of 83%, indicating strong profitability potential.
• Devyser is focusing on two key customer segments: clinical genetic labs and transplantation laboratories, which are expected to address unmet diagnostic needs.
• The company is advancing its transplantation diagnostics strategy by decentralizing tests, which could lead to faster turnaround times and lower costs.
• Devyser has initiated an FDA project for its cfDNA product, with promising early adoption by US customers even before FDA approval.

Negative Points

• The EBIT was negative at minus SEK 21 million, impacted by SEK 8 million in reorganization costs and SEK 6 million in FX headwinds.
• Revenue growth of 7.9% was lower than the previous quarter, indicating potential volatility in quarterly performance.
• The EMEA region, while the largest market, showed less growth than usual this quarter.
• The company faced challenges with a strong Swedish Krona, leading to a SEK 6 million negative FX impact.
• There are ongoing restructuring costs that will continue to impact financials into Q2.

Q & A Highlights

Q: Can you provide more details on the distributor sales and expectations for future orders? A: We do not provide specific guidance on individual customers, including Thermo Fisher. Orders have been coming in during Q1 and continue into Q2, but no further specifics are available. - Fredrik Dahl, Interim CEO

Q: How confident are you in achieving the 30% organic growth target for 2025? A: We are very confident in meeting our goals and milestones. Despite quarterly fluctuations, there is no reason to change our guidance for the full year. - Fredrik Dahl, Interim CEO

Q: Can you elaborate on the restructuring costs and their impact on Q2? A: The restructuring costs will have a minor impact on Q2, as the main changes were implemented in Q1. - Sabina Berlin, CFO

Q: Is there a trend in direct sales in Europe, and how is the market performing? A: There is no significant trend shift. The underlying demand is solid, with increased buying customers and prices. Some regions outside Italy are picking up pace, which is promising. - Theis Kipling, Chief Commercial Officer

Q: What drives the growth in Italy, and how much more potential is there in this market? A: Italy has been growing modestly in double digits, driven by incremental growth in tenders and a strong market position. We are adding more products to tenders, which supports growth. - Theis Kipling, Chief Commercial Officer

Q: When do you expect the US market to surpass Italy in size? A: We do not provide specific timelines, but the US market is on a good track to grow significantly. - Theis Kipling, Chief Commercial Officer

Q: Will the updated strategy lead to any negative impact on sales or increased costs? A: We have built a solid foundation for growth with the recent adjustments. We are executing more efficiently, and there is no expected negative impact on sales or costs. - Fredrik Dahl, Interim CEO

Q: Would you be as confident in achieving the sales target without the Thermo Fisher deal? A: Partnering with Thermo Fisher was a strategic decision to minimize risk and achieve our targets. We believe it is the best approach for commercializing transplantation products. - Fredrik Dahl, Interim CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.