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Wyld Networks - Massively growing order book - Mangold Insight Analysis

Wyld Networks
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Wyld, after launching its satellite IoT network service, has received a rapidly growing order book. The order intake has amounted to SEK 40.5 million during the first three months of the year. Mangold estimates that more orders are to be expected when it comes to both Wyld Connect and data. The order book totals approximately SEK 76 million, of which SEK 13 million relates to data. Data revenue alone is expected to reach approximately SEK 97.1 million per year when all 223 000 units are operating at a conservative price of 3.50 dollar per unit per month. For 2022, revenues and costs were slightly higher than our estimate. The company will add 5G NB-IoT compatibility which is expected to double the company's addressable market.

The company is estimated to be well capitalized to reach profitability in 2024. Upcoming warrants can raise SEK 35.8 million before issue costs. Mangold estimates that the company will receive about SEK 27.1 million. Mangold Fondkommission is the financial advisor in the transaction. We assume full dilution from the issue.
Mangold has adjusted up both revenue and costs in the long term, but also lowered the revenue estimate for 2023. The revenue estimate is reduced in the short term because most contracts run for three to four years, which means that orders will be recognized as revenue throughout the delivery period. The costs were higher than expected, which means that we will increase them moving forward while the inclusion of 5G NB-IoT is expected to increase revenue in the long term. Mangold repeats the price target of SEK 29.00 per share, corresponding to an upside of more than 140 percent.

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