Wyld Networks - Scaling up for bulk delivery - Mangold Insight Analysis
The virtual satellite network operator Wyld Networks ("Wyld") has replenished its order book which now totals approximately SEK 91.5 million, of which SEK 14.4 million relates to data revenue. In the first quarter of 2023, revenue was lower than expected of SEK 1.3 (4.0) million, which led to a revision of the full-year estimate. Mangold continues to estimate that the company will start delivering orders in volume during the third quarter of 2023. The company's costs are increasing at an expected pace and estimates remain unchanged for 2023.
The company is estimated to be well capitalized to reach profitability in 2024. TO3 warrants were subscribed at 97.1 percent, which is seen as high given the prevailing market climate. In total, approximately SEK 16.1 million was raised before issue costs. Mangold estimates that the cash will be sufficient for the expected profitability in 2024, given that the revenues start to scale significantly in the second half of 2023. The company had approximately SEK 10.0 million in cash at the end of the first quarter, which together with the issue and the R&D aid corresponds to approximately SEK 30 million.
Mangold has lowered the revenue estimate and EBIT margin for 2023. Mangold continues to see that the company is undervalued but lowers the target price to SEK 27.00 (29.00) per share over a 12 months period. In order to reach the target price, Wyld needs to deliver in significant volume in the second half of 2023.