XTPL Preliminary Q3’23 Sales: Steady Performance with PLN 3.7m Revenue

Q3’23 preliminary sales figures

The company reported that its estimated consolidated revenue from sales of products and services amounted to PLN 3.7m in Q3'23, and was on a similar level y/y (PLN 9.2m in 9M'23; +39% y/y).

The value of the grants raised was PLN 1.3m in Q3'23 vs. PLN 0.8m in Q3'22 (PLN 2.8m in 9M'23 vs. PLN 3m in 9M'22). XTPL's Management Board notes that in accordance with the rules of accounting for such grants, part of the funds will be included in the company's income statement, while the remainder will be included in the deferred income item in the balance sheet. XTPL's estimated cash balance was PLN 31.6m at the end of September 2023 (vs. PLN 3m at the end of June 2023 and vs. PLN 3.4m at the end of September 2022).

Opinion. NEUTRAL

XTPL generated about PLN 11.9m in revenue after 9M'23, which implies that the company should generate about PLN 7m in revenue in Q4'23 to meet our full-year forecast. Such a result is possible assuming the recognition of revenues from the sale of 6 DPS devices and the recognition of similar revenues from grants q/q. We note that for the company's equity story, the result in 2024 and progress in industrial implementations of the offered technology are more important.