- Sinch‘s adjusted EBITDA for the first quarter is SEK 889.0 million, which is a 12% year-over-year increase and higher than the estimated SEK 808.2 million.
- The company’s net sales reached SEK 7.05 billion, marking a 3.8% year-over-year growth, surpassing the estimate of SEK 6.99 billion.
- Organic revenue growth is reported at 3%.
- EBITDA decreased by 3.6% year-over-year, amounting to SEK 740 million.
- The loss per share improved to SEK 0.060 compared to SEK 0.11 in the previous year.
- The loss attributable to the owners of the company is SEK 47 million, representing a 47% improvement year-over-year.
- The CEO noted that cash conversion over the last year was at 50%, which is the high end of their guidance range of 40–50%.
- The quarter saw a strong underlying cash generation, despite an increase in working capital due to a cost-optimization agreement with a major supplier.
- This agreement is favorable for the company’s gross margin and profitability but has temporarily increased working capital, expected to normalize in upcoming quarters.
- There remains solid demand in Sinch‘s core markets, though external factors are being closely monitored.
- Newly implemented US tariffs do not affect Sinch‘s services directly.
- Analysts’ recommendations include 9 buys, 4 holds, and 1 sell for Sinch shares.
A look at Sinch Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analyzing Sinch AB’s long-term outlook utilizing the Smartkarma Smart Scores reveals a promising future for the company. With a top score of 5 in the Value category, Sinch showcases strong fundamentals and potential for growth. Despite scoring lower in Dividend and Growth categories, the company’s emphasis on providing resilient services is evident with a score of 3. This resilience, coupled with a solid Momentum score of 4, indicates a positive trajectory for Sinch in the market.
Sinch AB, a developer of cloud communication platforms that offers a range of services including personalized messaging and video calling, demonstrates a well-rounded performance according to the Smartkarma Smart Scores. While the company may have room for improvement in areas like Dividend and Growth, its emphasis on providing value and maintaining momentum bodes well for its long-term prospects. With a focus on resilience in its operations and a commitment to innovation, Sinch stands poised for continued success in serving its customer base in Sweden and beyond.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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