A reasonably significant new contract for Aiforia in the veterinary sector
Translation: Original comment published in Finnish on 4/24/2024 at 10:30 am EEST.
Aiforia announced that it has won a USD 200,000 contract for AI-based image analysis of animal samples by one of the world's leading veterinary operators and providers of diagnostic solutions in the US. The length of the contract was not mentioned in the press release, but we estimate it to be 1-3 years, which means an annual revenue of about USD 70-200 thousand per year. The contract is particularly interesting because we believe it is Aiforia's first contract of any significant size in the veterinary field. We believe that Aiforia's technology is competitive (e.g. the ability for users to create their own models) and also widely applicable, as we believe the announced contract reflects.
The total value of the contract represents just under 8% of 2023 revenue and just over 4% of our 2024 forecast. Our forecasts already include very strong growth and wins like this from Aiforia, so the contract does not lead to any forecast changes. However, it is the demonstration of Aiforia's competitiveness through new customer wins, as further evidenced by this agreement, that is of particular importance to Aiforia's investment story. In addition, demonstrating the applicability of the company's technology to new industries expands its potential target market. This will have a significant impact on long-term value creation if the openings lead to a growing market position in the new segment that is sustainable over time.
Aiforia Technologies
Aiforia Technologies equips pathologists and researchers in preclinical and clinical laboratories with software to translate images into discoveries, decisions and diagnoses. The company's products and services are used for medical image analysis, across a variety of areas from oncology to neuroscience. Aiforia Technologies is headquartered in Finland.
Read more on company pageKey Estimate Figures08.03.2024
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 2.4 | 4.3 | 8.1 |
growth-% | 49.32 % | 80.10 % | 88.37 % |
EBIT (adj.) | -12.9 | -11.4 | -10.2 |
EBIT-% (adj.) | -537.07 % | -262.96 % | -125.39 % |
EPS (adj.) | -0.50 | -0.44 | -0.39 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | - | - | - |
EV/EBITDA | - | - | - |