ContextVision AB (publ) (CONTX) Earnings Call Transcript & Summary

Yes. Printing money is -- well, we're not doing as good as the money markets, I guess. But fundamentally, there's nothing wrong, right? Indeed, Q3 margins have even outperformed Q2, which is fantastic to see. But we do need this to invest into executing our growth strategy moving forward, but we certainly will also optimize our capital allocation strategy. Just to add to that, the main challenge for us is to get OpEx under control and set a new baseline after the spinoff. And I think we've done very good and according to plan. So what you see throughout the first 3 quarters, I do think is a good new baseline that we've established.

Okay. I know you're in the middle of a strategy discussion as we speak. But can you reveal some part of it now?

Well, I'm happy to do -- to give you a few thoughts on what we're up to. So number one, I think the insight is that our focus on the core, which we set as a strategy after the spinoff of INIFY has proven and shown to be very successful, right? So using and working within our customer segments that we're addressing now, building on the technology and product portfolio that we have still allows us to significantly grow the share of wallet, mainly within larger OEM and accounts. And that is true for ultrasound, but we're also going to reenter stronger into the x-ray market. So there are good opportunities by focusing on the core. But next to that, I think the stronger partnership approach and collaboration approach, especially with the larger OEMs, is going to show us more opportunities in adjacent business areas, right? To grow with our customers is going to be a very good opportunity moving forward.

Yes. And you come from one of these big conglomerates. How would that impact?

Well, I hope that is going to help, right? To some extent, we know what they work on, how they think, what they need. And I do see we're able to deliver on those needs.

Exciting times. ContextVision is doing well, but the world, it's difficult times. U.S. is going into recession. Many European countries are doing the same. How do you think that will affect ContextVision.

Yes, we're carefully following the situation. And indeed, it's very dynamic. But overall, we're depending on the business of our customers. And their business, at least when it comes to the European and U.S. markets, to a large extent, is anti-cyclical. So in that sense, I would not expect a very significant impact. Plus, we're having a very strong growth pattern in Asia, so that might help as well. And number three, when it comes to potential crisis situations, which we're also following that could hit us, we're still a lean and dynamic organization. So I think we're well set up to weather that storm.

Well, it's looking good for ContextVision, that's good. And good luck.

Thank you.