Flowscape published its Q4 interim report on 21.2. The figures were good:
- EBITDA positive for the full year
- EBIT positive for the final quarter
- Full-year cash flow positivity was missed due to delayed payments (however, by the time of the report, cash flow was already positive)
- Record revenue and amount of recurring revenue
- Positive expectations for 2024
- Results are expected particularly from the IMEA region partnership
- The US market is believed to be awakening
- High activity is seen in the Nordics, where they win a large percentage of deals
- New product updates will be released, bringing additional sales potential even for current customers
The results were positively received by the market (approx. +20%), but the company still appears highly undervalued when looking at the share price. A major owner has been reducing their stake during Q4 and has apparently continued to do so during the early part of the year. Since this is a low-liquidity stock, it has been possible to accumulate shares cheaply relative to the risk. As the company turns profitable, I believe interest in the stock will grow, even though it is still a relatively small company (50M SEK revenue). The company is also practically debt-free, so there is no risk in that regard either.