In 2022, Elliptic Labs expanded its AI Virtual Smart Sensor products across customers, models, and verticals. The company ended the year with three of the top five PC/Laptop OEMs as customers – a commercial achievement that took only a fraction of the time necessary to make a similar impact in the smartphone vertical. The company has established a broad platform for further expansion in the years to come.
Highlights from Q4 2022:
- Signed additional license agreement with laptop OEM, fifth expansion agreement for AI Virtual Presence Sensor covering more laptop models
- Signed enterprise license contracts with two new top-3 laptop OEM
- Launched AI Virtual Proximity Sensor on seven new smartphones
Subsequent to Q4 2022:
- Signed software license contract with new Top-5 smartphone OEM
- Signed new contract with existing smartphone customer
- Signed first Proof of Concept (PoC) for new operating system (OS) with existing customer in the PC-market
“In the fourth quarter, we added two of the top five PC OEMs as customers. To put our progress into perspective, it took us six years to add two of the top 5 smartphone customers – but only 18 months to add on 3 of the top 5 PC customers.” said CEO of Elliptic Labs Laila Danielsen.
Successful expansion into the PC/laptop market supports Elliptic Labs' long-term growth ambitions. However, the company's customers in both the smartphone and PC/laptop markets currently see an uncertain near-term demand outlook and adding uncertainty to the timing of Elliptic Labs' revenue target. The company previously aimed for revenue of NOK 500 million in 2023 but given the current low market visibility this will be delayed into 2024-25.
For the full year 2022, Elliptic Labs revenues from contracts with customers came in at NOK 52.1 million compared to NOK 54.6 million, a -5% decrease. In the fourth quarter 2022, contract revenue ended at NOK 9.8 million (34.7), representing a 72% year-on-year decrease. The decrease in Q4, was a result of lower revenue in the smartphone vertical as Elliptic Labs’ largest smartphone customer did not place an upfront 12-months commitment for 2023 in the fourth quarter of 2022, but instead placed a smaller upfront one-quarter minimum commitment.
“As we stated at the third quarter, the expected lumpiness has occurred as market slowdown and clouded visibility for our largest smartphone customer.” Says Laila Danielsen, CEO of Elliptic Labs. “Our priority is to continue to secure more customers and partners with well-crafted, long-term agreements, as we manage our organization to accommodate our expected growth. All while maintaining a sharp focus on managing cash and maintaining financial solidity.”
Elliptic Labs will present its results today at 08:00 CET, followed by a Q&A session. Please use the following link to access the presentation: