The Group January - March 2025 (KSEK)

• Net sales 1 274 (10 918) -88%
• Operating result -12 073 (-2 062)
• EBIT -16 140 (-757)
• Earnings per share before and after dilution -0.99* (-0.16)

* Earnings per share after tax, calculated on the result for the period and the average number of shares for the period January - March, 13 674 171 shares.
 

Summary of the first quarter

• Net sales for Q1 2025 amounted to 1,3 MSEK, compared to 10,9 MSEK in Q1 2024.
• EBIT for the quarter was -16,1 MSEK, compared to -0,8 MSEK in Q1 2024, which includes litigation-related costs of approximately 4.1 MSEK.
• Both net sales and EBIT were significantly impacted by the ongoing litigation process, as our former largest customer failed to fulfil their contractual obligations. This dispute is currently being addressed and will be settled in the District Court of Stockholm.

CEO words

Despite a tough year, demand for road safety continues to rise

This time last year we were on a great growth trajectory, experiencing our tenth consecutive quarter of growth. Without the customer dispute in 2024, we would have reached profitability by now. As it is, the dispute has caused a gap in revenue, making 2025 difficult to predict. Added to this is the current turbulence of the global economy, resulting in an uncertain and cautious outlook for many businesses.

Despite this, our confidence remains high, for reasons including:

• Strong gross margins of approximately 90%
• Solid cost control
• Greater momentum than ever before with current and new customers
• Growing demand for AI solutions to reduce road crashes
• A powerful new reseller strategy
• An AI that is best in class for predicting road crashes

Road crashes are a huge problem for societies, with almost 1.2 million people killed and 50 million people injured on the roads every year, at an estimated annual cost of around $1.8 trillion. The United Nations has set a target to reduce road deaths and serious injuries by 50% by 2030. And, since approximately 1 in 3 road crashes involves someone driving for work purposes, the pressure is on organizations to take accountability for road safety.

We provide the missing component that takes road safety management to the next level. We make driving comparable globally, across brands, vehicle types and locations. And we enable organizations to see who will crash in the coming weeks. This is unique to GT, valuable information that has the power to save lives and reduce the economic burden of road crashes.

Already this year, some of the world's largest corporations have indicated their desire to lead the way with corporate responsibility for road safety. They are seeking technology that enables them to benchmark driver risk globally to accelerate their road safety efforts. We have that solution.

Recently, we've conducted a major study of the efficiency of our AI across continents, vehicle types and driving circumstances to define the predictive power of our AI. Evidence based facts show that our ability to predict high- to low-risk drivers is unique. Not only do we predict at-fault claims, but all claims an organization can incur. For severe crashes, our lift span is 105. This means that the highest risk drivers identified by our AI are 105x more likely to be involved in a crash than those identified as lowest risk. I'm not aware of any other model that comes close to these results.

This, along with our positive momentum and exciting new opportunities, ensures we are firmly positioned for growth. In addition to our excellent relationships with existing customers and partners, we are building a reseller strategy, with several committed resellers already in our pipeline. On top of that, the progress of our ongoing strategic review, has led to promising discussions with high-calibre potential partners that could significantly accelerate the reach of our technology.

We know there are no limits to what our AI can achieve and, with the above in mind, I look to the future with confidence.

Liselott Johansson, CEO