Artificial Intelligence
Image Sensing Systems, Inc. Announces 2021 First Quarter Results
SAINT PAUL, Minn., May 03, 2021 (GLOBE NEWSWIRE) — Image Sensing Systems, Inc. (Nasdaq: ISNS) today announced results for its quarter ended March 31, 2021.
First Quarter 2021 Financial Summary
- First quarter royalties were $1.8 million, a decrease of 14 percent from the same period in the prior year.
- First quarter product sales were $1.2 million, an increase of 11 percent from the same period in the prior year.
- Operating expenses totaled $1.9 million in the first quarter of 2021, a decrease of 34 percent from the prior year period.
- Capitalized software costs in the first quarter of 2021 were $123,000 compared to $22,000 in the prior year period.
- The Company recognized other income of $931,000 for the forgiveness of the Paycheck Protection Program loan and accrued interest during the first quarter.
- Net income for the first quarter of 2021 totaled $1.1 million compared to a net loss of $111,000 for the same period in the prior year.
- Cash balance decreased to $8.2 million at March 31, 2021, down from $8.6 million at the end of the fourth quarter of 2020.
First-Quarter Results:
First quarter revenue for Image Sensing Systems, Inc. (“ISS,” the “Company,” “us,” “we,” or “our”) in 2021 was $3.0 million compared to $3.2 million in the first quarter of 2020. Revenue from royalties was $1.8 million in the first quarter of 2021 compared to $2.1 million the first quarter of 2020. Product sales increased to $1.2 million in the first quarter of 2021, an 11 percent increase from $1.1 million in the first quarter of 2020. Autoscope video product sales and royalties were $76,000 and $1.8 million, respectively, and RTMS radar product sales were $1.1 million in the first quarter of 2021.
Gross margin for the first quarter of 2021 was 76 percent, a 4 percentage point or 5 percent decrease from a gross margin of 80 percent for the same period in 2020. Gross margin from royalties decreased to 95 percent in the first quarter of 2021 compared to 96 percent in the first quarter of 2020. Product sales gross margin for the first quarter of 2021 was 47 percent compared to 49 percent in the prior year period. The decrease in the gross margin percent was primarily the result of a reduction in warranty reserve in the first quarter of 2020.
The 2021 first quarter net income includes operating expenses of $1.9 million, a 34 percent decrease from the first quarter of 2020. The decrease is driven by first quarter 2020 expenses of $294,000 for legal and outside consulting costs related to the efforts around exploring strategic alternatives to maximize shareholder value which ended in 2020. The decrease in operating expenses is also due to the increase in capitalized software development costs and decreased headcount in the first quarter of 2021 compared to the first quarter of 2020. During the first quarter of 2021, the Company capitalized $123,000 of internal software development costs compared to $22,000 in the prior year period. Other income of $931,000 was recorded during the first quarter of 2021 when the Company received forgiveness of the Paycheck Protection Program loan and accrued interest. The Company’s net income for the first quarter was $1.1 million, or $0.21 per diluted share, compared to a net loss of $(111,000) or $(0.02) per diluted share, in the prior year period.
On a non-GAAP basis, excluding the amortization of intangible assets and depreciation for the applicable periods, operating income for the first quarter of 2021 was $638,000 compared to an operating loss of $(51,000) in the prior year period.
“We took measured actions in late 2020 that drove additional efficiencies into the organization to address COVID-19 induced market dynamics and seasonal revenue fluctuations. As reflected in our first quarter results, these actions drove profits allowing us to continue investing in new products and services. I am pleased to report that our product sales came in on target with 11 percent year-over-year growth, a direct result of our team’s ability to support, promote, and sell in a challenging virtual environment. We are seeing rapid adoption of our RTMS Echo radar platform and expect this to continue as we add additional features in the coming months. While royalty revenues declined over last year, we believe this to be a transient event and expect Autoscope sales to rebound in the near term,” said Chad Stelzig, CEO for ISS.
“The first quarter of 2021 also marks the beginning of several important product development initiatives to address vulnerable road users, deploy artificial intelligence, and improve the accessibility of data from our platforms. These initiatives will drive new business opportunities requiring actionable data and unique insights.”
“Based upon the Company’s financial strength and earnings, we believe that the recently declared dividend will be supported by operating cash flow of the Company while still allowing for growth and the exploration of acquisition opportunities.”
“We are excited about the next chapter of the Company, which we feel will help to build our existing business relationships and distribution agreements that we currently have, while also helping to foster future growth opportunities,” concluded Mr. Stelzig.
Non-GAAP Financial Measures:
We provide certain non-GAAP financial information as supplemental information to financial measures calculated and presented in accordance with GAAP (Generally Accepted Accounting Principles in the United States). This non-GAAP information excludes the impact of amortizing intangible assets and depreciation and may exclude other non-recurring items. Management believes that this presentation facilitates the comparison of our current operating results to historical operating results. Management uses this non-GAAP information to evaluate short-term and long-term operating trends in our core operations. Non-GAAP information is not prepared in accordance with GAAP and should not be considered a substitute for or an alternative to GAAP financial measures and may not be computed the same as similarly titled measures used by other companies.
About Image Sensing Systems
Image Sensing Systems, Inc. is a global company dedicated to helping improve safety and efficiency for cities and highways by developing and delivering above-ground detection technology, applications and solutions. We give Intelligent Transportation Systems (ITS) professionals more precise and accurate information – including real-time reaction capabilities and in-depth analytics – to make more confident and proactive decisions. We are headquartered in St. Paul, Minnesota. Visit us on the web at imagesensing.com.
Safe Harbor Statement: Statements made in this release concerning the Company’s or management’s intentions, expectations, or predictions about future results or events are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company’s control; developments in the demand for the Company’s products and services; relationships with the Company’s major customers and suppliers; the mix of and margins on the products we sell; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services; adverse weather conditions in our markets; the impact of governmental laws, regulations, and orders, including as a result of the COVID-19 pandemic caused by the coronavirus; international presence; tariffs and other trade barriers; our success in integrating any acquisitions; potential disruptions to our supply chains (including disruptions caused by geopolitical events, military actions, work stoppages, nature disasters, or international health emergencies, such as the COVID-19 pandemic); and competitive factors. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company’s current expectations are contained in the Company’s reports and other documents filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020 filed on March 11, 2021.
| Image Sensing Systems, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share information) (unaudited) |
||||||||
| Three-Month Periods Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue | ||||||||
| Product sales | $ | 1,163 | $ | 1,050 | ||||
| Royalties | 1,816 | 2,109 | ||||||
| 2,979 | 3,159 | |||||||
| Cost of revenue | 706 | 623 | ||||||
| Gross profit | 2,273 | 2,536 | ||||||
| Operating expenses | ||||||||
| Selling, general and administrative | 1,366 | 1,909 | ||||||
| Research and development | 496 | 902 | ||||||
| 1,862 | 2,811 | |||||||
| Income (loss) from operations | 411 | (275 | ) | |||||
| Other income, net | 925 | – | ||||||
| Income (loss) from operations before income taxes | 1,336 | (275 | ) | |||||
| Income tax expense (benefit) | 205 | (164 | ) | |||||
| Net income (loss) | $ | 1,131 | $ | (111 | ) | |||
| Basic net income (loss) per share | $ | 0.21 | $ | (0.02 | ) | |||
| Diluted net income (loss) per share | $ | 0.21 | $ | (0.02 | ) | |||
| Weighted shares – basic | 5,322 | 5,267 | ||||||
| Weighted shares – diluted | 5,342 | 5,267 | ||||||
| Image Sensing Systems, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
|||||||
| March 31, 2021 |
December 31, 2020 |
||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 8,212 | $ | 8,605 | |||
| Receivables, net | 2,850 | 2,261 | |||||
| Inventories | 829 | 770 | |||||
| Prepaid expenses and other current assets | 434 | 480 | |||||
| 12,325 | 12,116 | ||||||
| Property and equipment, net | 268 | 303 | |||||
| Operating lease asset, net | 82 | 136 | |||||
| Intangible assets, net | 3,097 | 3,161 | |||||
| Deferred income taxes | 5,507 | 5,708 | |||||
| $ | 21,279 | $ | 21,424 | ||||
| Liabilities and Shareholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 301 | $ | 547 | |||
| Short-term debt | – | 349 | |||||
| Warranty and other current liabilities | 495 | 576 | |||||
| 796 | 1,472 | ||||||
| Non-current liabilities | |||||||
| Operating lease obligation | 6 | 8 | |||||
| Long-term debt | – | 574 | |||||
| 6 | 582 | ||||||
| Shareholders’ equity | 20,477 | 19,370 | |||||
| $ | 21,279 | $ | 21,424 | ||||
| Image Sensing Systems, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
| Three-Month Periods Ended March 31, | |||||||
| 2021 | 2020 | ||||||
| Operating activities | |||||||
| Net income (loss) | $ | 1,131 | $ | (111 | ) | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 227 | 224 | |||||
| Stock option expense | 53 | 59 | |||||
| Deferred income tax expense | 201 | – | |||||
| Forgiveness income from PPP Loan | (931 | ) | – | ||||
| Changes in operating assets and liabilities | (867 | ) | 322 | ||||
| Net cash provided by (used for) operating activities | (186 | ) | 494 | ||||
| Investing activities | |||||||
| Capitalized software development costs | (123 | ) | (22 | ) | |||
| Purchases of property and equipment | (10 | ) | (75 | ) | |||
| Net cash used for investing activities | (133 | ) | (97 | ) | |||
| Financing activities | |||||||
| Stock for tax withholding | (24 | ) | – | ||||
| Net cash used for financing activities | (24 | ) | – | ||||
| Effect of exchange rate changes on cash | (50 | ) | (90 | ) | |||
| Increase (decrease) in cash and cash equivalents | (393 | ) | 307 | ||||
| Cash and cash equivalents at beginning of period | 8,605 | 5,118 | |||||
| Cash and cash equivalents at end of period | $ | 8,212 | $ | 5,425 | |||
| Non-Cash investing and financing activities: | |||||||
| Purchase of property and equipment in accounts payable | $ | 3 | $ | 25 | |||
Image Sensing Systems, Inc.
Non-GAAP Income from Continuing Operations
(in thousands)
(unaudited)
We define non-GAAP income from operations as income from operations before amortization of intangible assets and depreciation for the applicable periods. Management believes non-GAAP income from operations is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP income from operations may not be comparable to similarly titled definitions used by other companies. The table below reconciles non-GAAP income from operations, which is a non-GAAP financial measure, to comparable GAAP financial measures:
| Three-Month Periods Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Income (loss) from operations | $ | 411 | $ | (275 | ) | |||
| Amortization of intangible assets | 187 | 174 | ||||||
| Depreciation | 40 | 50 | ||||||
| Non-GAAP income (loss) from operations | $ | 638 | $ | (51 | ) | |||
Note – Our calculation of non-GAAP income from operations is considered a non-GAAP financial measure and is not in accordance with, or preferable to, “as reported”, or GAAP financial data. However, we are providing this information, as we believe it facilitates analysis of the Company’s financial performance by investors and financial analysts.
| Contact: | Frank Hallowell, Chief Financial Officer |
| Image Sensing Systems, Inc. Phone: 651.603.7744 |
Artificial Intelligence
IoT Node and Gateway Market worth $604.7 billion by 2029 – Exclusive Report by MarketsandMarkets™
CHICAGO, May 24, 2024 /PRNewswire/ — The IoT Node and Gateway market is projected to grow from USD 424.6 billion in 2024 and is estimated to reach USD 604.7 billion by 2029; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.3% from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth of the IoT Node and Gateway market is driven by the Provision of increased IP address space through IPv6, Emergence of 5G technology, and Increasing need for data centers.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=248007097
Browse in-depth TOC on “IoT Node and Gateway Market”
410 – Tables70 – Figures390 – Pages
IoT Node and Gateway Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 424.6 billion
Estimated Value by 2029
$ 604.7 billion
Growth Rate
Poised to grow at a CAGR of 7.3%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By Hardware, End-use Application and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Requirement for wireless spectrum and licensed spectrum
Key Market Opportunities
Accelerated IoT adoption in healthcare sector
Key Market Drivers
Rising use of wireless smart sensors and networks
By Hardware, the Logic Devices are projected to grow at a high CAGR of IoT Node and Gateway market during the forecast period.
Logic devices can adapt to changing requirements even after deployment. As new features or functionalities are needed, the logic within the device can be reprogrammed to accommodate these changes, extending the useful life of the product and reducing the need for hardware revisions. The integration of FPGA technology into IoT devices further enhances these advantages. The integration of FPGAs into IoT nodes and gateways empowers manufacturers to develop highly optimized, customizable, and scalable solutions that meet the diverse needs of IoT applications. Tesla’s Full Self-Driving (FSD) computer utilizes FPGAs to handle complex neural network computations for autonomous driving algorithms. This allows them to potentially improve their FSD capabilities through software updates that reconfigure the logic within the FPGAs.
BFSI segment in IoT Node and Gateway Market is projected to grow at a highest CAGR during the forecast period.
BFSI sector can use IoT technology to provide more convenient solutions for customers. IoT can be used to perform data collection in real time and for instant communication between devices. For instance, it can facilitate cashless payments using an RFID scanner to identify products in the shopping cart and mobile wallet. The adoption of mobile point of sale (mPOS) systems and kiosks is fundamentally reshaping the landscape of the BFSI market. mPOS facilitates transactions anytime, anywhere, benefiting unbanked populations and enabling temporary service points for events. Kiosks offer convenient banking functionalities, reducing wait times and freeing up staff for complex inquiries. These technologies drive cost savings by requiring less investment and automating routine tasks, allowing resources to be reallocated strategically. They provide rich data for personalized services, fraud detection, and operational optimization. mPOS systems and kiosks promote financial inclusion by extending services to remote areas, fostering economic activity and well-being.
Inquiry Before Buying: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=248007097
North America accounts for the largest share in IoT Node and Gateway Industry.
The North American IoT market is poised to grow, driven by government efforts to transition cities into smart urban centers. The growing need for sophisticated IoT solutions, fueled by the widespread availability of high-speed data, will further propel market expansion in this region. Furthermore, North America’s dynamic IoT node and gateway ecosystem features established players like Intel Corporation (US), Texas Instruments Incorporated (US), Dell (US), and Cisco Systems (US), driving competition, innovation, and affordability. Increasing research and development at industry levels is broadening the application areas of IoT in various industries, such as retail, consumer electronics, automotive and transportation, and healthcare, especially in the US. The increased demand for effective solutions and focus on early, accurate, and fast diagnosis of diseases has led to huge investments in technological developments in the healthcare sector.
Key Players
Key companies operating in the IoT Node and Gateway companies are Intel Corporation (US), Qualcomm Technologies, Inc. (US), Texas Instruments Incorporated (US), STMicroelectronics (Switzerland), Microchip Technology Inc. (US), Huawei Technologies Co., Ltd. (China), NXP Semiconductors N.V. (Netherlands), Cisco Systems, Inc. (US), Hewlett Packard Enterprise Development LP (US), TE Connectivity Ltd (Switzerland), Advantech Co., Ltd. (Taiwan), Dell Technologies (US), among others.
Get 10% Free Customization on this Report: https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=248007097
Browse Adjacent Market: Semiconductor and Electronics Market Research Reports &Consulting
Related Reports:
IoT Technology Market by Node Component (Sensor, Memory Device, Connectivity IC, Processor, Logic Devices), Software Solution (Remote Monitoring, Data Management), Platform, Service, End-use Application, Geography – Global Forecast to 2029
Industrial IoT Market Size, Share & Industry Growth Analysis Report by Device & Technology, Connectivity Type, Software, Vertical (Manufacturing, Energy, Oil & Gas, Healthcare, Retail, Transportation, Metals & Mining, Agriculture), and Geography – Global Growth Driver and Industry Forecast to 2026
Internet of Robotic Things Market (IoRT) by Component (Sensor, Power, Control), Service (Professional, Managed), Platform (Device, Application, Network), Software (Analytics, Data, Security, Monitoring, Bandwidth), Application – Global Forecast to 2022
MulteFire Market by Device (Small Cells, Switches, Controllers), Application (Industrial Manufacturing, Commercial, Transportation, Public Venues, Healthcare, Oil & Gas and Mining, Power Generation, Hospitality), and Geography – Global forecast 2025
Smart Robots Market Size, Share by Component (Sensors, Actuators, Control Systems), Type, Operating Environment, Mobility, Application (Domestic, Field/Agricultural, Public Relations, Industrial), and Region – Global Forecast to 2025
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact: Mr. Aashish MehraMarketsandMarkets™ INC. 630 Dundee RoadSuite 430Northbrook, IL 60062USA: +1-888-600-6441Email: [email protected] Our Web Site: https://www.marketsandmarkets.com/Research Insight: https://www.marketsandmarkets.com/ResearchInsight/iot-gateway-market.aspContent Source: https://www.marketsandmarkets.com/PressReleases/iot-gateway.asp
Logo: https://mma.prnewswire.com/media/1951202/4609423/MarketsandMarkets.jpg
View original content:https://www.prnewswire.co.uk/news-releases/iot-node-and-gateway-market-worth-604-7-billion-by-2029—exclusive-report-by-marketsandmarkets-302155034.html
Artificial Intelligence
atNorth Wins ‘Colocation Provider of the Year’ and ‘Digital Infrastructure Project of the Year’ at Industry Award Events
AtNorth recognized at the Electrical Review & Data Centre Review Awards and the Tech Capital Awards.
REYKJAVÍK, Iceland, May 24, 2024 /PRNewswire/ — atNorth, the leading Nordic colocation, high-performance computing, and artificial intelligence service provider has today announced further acknowledgement in the industry as it wins two significant awards.
The business has been awarded the `Colocation Provider of the Year’ award at the Electrical Review & Data Centre Review Awards. atNorth has undertaken a significant expansion strategy in recent years, that has ensured that the business can offer high performance infrastructure at speed and scale. This award reflects the business’ growth journey as it continues to innovate and adapt to technological advancements and client requirements.
atNorth has also won the `Digital Infrastructure Project of the Year’ at the Tech Capital Awards for its work with client, Shearwater Geoservices. The global marine imaging and processing leader achieved a 92% reduction in CO2 output and an 85% reduction in cost by moving a portion of its UK HPC infrastructure to one of atNorth’s Icelandic data center sites.
Fueled by the abundant renewable power sources of the Nordics, atNorth`s services deliver performance and efficiency for high density workloads in a sustainable way that enables clients to decarbonize their IT footprint and reduce overall costs.
Winners are voted for by a panel of industry experts for both awarding bodies in a process that aims to recognize the outstanding achievements within the digital infrastructure industry.
“We are thrilled to receive these acknowledgments for our data center services”, says Eyjólfur Magnús Kristinsson, CEO at atNorth. “atNorth has experienced significant growth over the last couple of years and this industry recognition is a testament to our dedication to delivering excellence across the board. We are determined to continue decarbonizing the world’s most demanding workloads in an efficient, sustainable, and cost-effective way.”
The news follows atNorth’s announcements of colocation clients Crusoe, BNP Paribas and Advania. The business has also received recent recognition from multiple other awarding bodies including; the Datacloud Global Awards, the Energy Awards, TechRound’s Sustainability60 and the UK Green Business Awards.
About atNorth
atNorth is a leading Nordic data center services company that offers sustainable, cost-effective, scalable colocation and high-performance computing services trusted by industry-leading organizations. The business acquired leading High-Performance Computing (HPC) provider, Gompute, in 2023 enabling a compelling full stack offering tailored to AI and other critical high-performance workloads.
With sustainability at its core, atNorth’s data centers run on renewable energy resources and support circular economy principles. All atNorth sites leverage innovative design, power efficiency, and intelligent operations to provide long-term infrastructure and flexible colocation deployments. The tailor-made solutions enable businesses to calculate, simulate, train and visualize data workloads in an efficient, cost-optimized way.
atNorth is headquartered in Reykjavik, Iceland and operates seven data centers in strategic locations across the Nordics, with additional sites to open in Helsinki, Finland and in Denmark in Q4 2024, as well as its tenth site ready for operation in Kouvola, Finland in 2025.
For more information, visit atNorth.com or follow atNorth on LinkedIn or Facebook.
Press Contact:Caroline BruntonKite Hill PR for atNorth+44 (0) 7796 274 [email protected]
This information was brought to you by Cision http://news.cision.com.
https://news.cision.com/atnorth/r/atnorth-wins–colocation-provider-of-the-year–and–digital-infrastructure-project-of-the-year–at-i,c3987735
The following files are available for download:
https://mb.cision.com/Main/18907/3987735/2820097.pdf
Release
https://news.cision.com/atnorth/i/awards,c3303761
Awards
https://news.cision.com/atnorth/i/ice03-02227-front-left-close,c3303762
ICE03 02227 front left close
View original content:https://www.prnewswire.co.uk/news-releases/atnorth-wins-colocation-provider-of-the-year-and-digital-infrastructure-project-of-the-year-at-industry-award-events-302155172.html
Artificial Intelligence
Titans of Tech: GP Bullhound releases its annual report on the European tech ecosystem
LONDON, May 24, 2024 /PRNewswire/ — Titans of Tech: Unrivalled era of A.I. led innovation for European Tech – No more excuses. GP Bullhound is proud to announce the release of its Titans of Tech 2024 report. For the tenth year in a row, GP Bullhound has released its annual Titans of Tech report, highlighting and analysing the growth trends in Europe’s tech ecosystem. This comprehensive analysis underscores the resilience and growth of Europe’s tech sector, setting the stage for a new era of innovation and investment.
Key takeaways from our report include:
The funding frenzy is over, but the new normal is very healthy: Funding levels have normalised, averaging €15Bn per quarter over the last year, which is ~50% higher than 2019.The value of the ecosystem is growing despite the failures: 14 new unicorns were created in the last 12 months. Europe and Israel now have 323 unicorns, up from 311 a year ago and 283 the year before. The ecosystem’s total valuation has grown to $1.2Tr, an ~11x increase in billion-dollar companies and a ~14x increase in aggregate valuation since our first report in 2014.Megarounds are fewer but larger and still accessible: Access to capital rounds exceeding $50 million has tightened, but investors remain interested in supporting innovators. The deal count dropped 68% over the last two years due to a focus on profitability and conservative planning. Only 17% of European unicorns raised capital in 2023, as 93% had already raised funds during the 2021-2022 bull market.Software innovation continues, shaping the way we live and work: Despite funding challenges, technological developments, especially in artificial intelligence, continue to drive automation and cost savings. European AI companies received over €11Bn in funding in the last year, with 36% of new unicorns being AI/ML businesses.Category leaders and geographies: This year, the UK and France lead the startup arena with three unicorns each. The UK’s unicorns are valued at $3.4Bn, with significant contributions from AI leaders Synthesia and Builder.ai. France’s trio reaches a collective valuation of $7Bn, highlighted by innovators like Mistral AI. Germany, Israel, and the Netherlands each added two unicorns, while Sweden and Italy added one unicorn each.Europe’s most promising startups: GP Bullhound has analysed more than 100 European startups for scale, velocity, and sentiment, and ranked the top 50 companies with the most potential to become one-billion-dollar companies. The top 10 include Agicap, Brevo, Typeform, Homa, AMBOSS, Akeneo, Form3, Flo Health, Aidoc, and ConnexOne.Manish Madhvani, Managing Partner at GP Bullhound, said: “After ten years of issuing our Titans of Tech report, we have witnessed the highs and lows of the European tech ecosystem. A year ago, the situation was less encouraging for the fundraising environment, with macro uncertainty and with businesses more focused on layoffs than on growth and innovation.
Today, against the backdrop of negative headlines, we have cemented the building blocks for the next wave of innovation. Funding levels have stabilised, and are amazingly 50% higher than pre bull market levels. With Europe’s maturing base of engineering talent and the world’s fascination in its potential productivity gains, artificial intelligence offers a unique opportunity to create global leaders in record time. There is no shortage of funding for the best entrepreneurs and companies, as evidenced by the record $220m seed round for Paris based H announced this week. What was noticeable about the round was the range of the investor syndicate : from strategics such as Amazon, Samsung and UI Path, household names such as Bernard Arnault, Eric Schmidt and Xavier Niel, and leading VC’s.Looking ahead, we expect the next few years to represent an era of unprecedented innovation in the European ecosystem. Innovation is flowing, vast amounts of capital are available for the strong and the talent pool is expanding. No more excuses Europe!”
Expert interviewsWhat does it take to build a billion-dollar company? What are the critical success factors for European tech? How to remain resilient in a challenging market and benefit from economic downturns? This year’s report features expert views from leading founders and CEOs, including Synthesia, Quantexa, SEON, Flo Health, Zappi and CoverManager.
Download full report: www.gpbullhound.com/articles/titans-of-tech-2024
EnquiriesFor enquiries, please contact: [email protected]
About GP BullhoundGP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 12 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.
Photo: https://mma.prnewswire.com/media/2421454/GP_Bullhound.jpgLogo: https://mma.prnewswire.com/media/2421453/GP_Bullhound_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/titans-of-tech-gp-bullhound-releases-its-annual-report-on-the-european-tech-ecosystem-302155130.html
-
Uncategorized7 days agoCoca-Cola: The future is ‘AI meets human ingenuity’
-
Artificial Intelligence7 days agoMore than $9 Million Awarded to High School Scientists and Engineers at the Regeneron International Science and Engineering Fair 2024
-
Uncategorized7 days ago
The rise of intelligent automation as a strategic differentiator
-
Uncategorized7 days ago
AI, bias and experiments: how Women in News is tackling tech’s inbuilt stereotypes
-
Uncategorized7 days ago
Sony Music slams tech giants for unauthorised use of stars’ songs
-
Uncategorized7 days ago
Sainsbury’s aims to be an ‘AI-enabled grocer’ with Microsoft AI technology
-
Uncategorized7 days ago
How SAP BTP Becomes the Trusted Platform for Business AI
-
Uncategorized7 days ago
Researchers build AI-driven sarcasm detector
