BlincVision (TERRNTB) Earnings Call Transcript
May 19, 2025
Earnings Call Speaker Segments
Hi, and welcome to this presentation of Terranet's Q1 report for 2025. My name is Jasper and I will be moderating this call today. [Operator Instructions] We will start the presentation with a short summary video and then go into the interview section before we take all of your questions. Joining me today are Terranet's new CEO, Lars Lindell; and CTO, Pierre Ekwall. But first, let's have a look at the summary video. [Presentation]
Welcome to the interview section of Terranet's Q1 webcast. As mentioned before, exciting to have Terranet's new CEO, Lars Lindell, here today, and also CTO, Pierre Ekwall.
But let's start with a question to you, Lars. This is your first report as CEO. How has the start of the year been for you and for Terranet?
Thanks for that introduction. I started in March. So I have, of course, not been there for the full quarter. But I would say that the year has started well for Terranet, mainly for 2 reasons. The first one is that we put a financing package together, which I think was very good. Shareholders should be happy about that one. And R&D has progressed as planned. So with those 2 things, I think we're off to a good start.
And what attracted you to Terranet and the opportunity to lead the company forward?
First of all, in technology industry, I believe that for a small company to break in, you need to have a very, very clear and tangible competitive advantage. BlincVision promises to take breaking decisions up to 10x as fast as existing system. That's a very good number to go out and discuss with customers. Secondly, I'm very much of the opinion that a CEO for such a small company has to be present in the daily work. And this company is in the region where I live. So that was also a very good match. So the technology promises are good enough for us to break into the market, and I think a local company suits me best.
Great answer. Let's move on to the company's progress and the road map. Through your reports, Terranet clearly communicates the company's road map going forward. In the Q4 report, it was stated that a proof-of-concept through MobilityXlab was planned for the first quarter of 2025. Pierre, what are the results here?
Yes. Thank you. Yes, being part of MobilityXlab gave us the opportunity to work closely with an established industry partner, something that's incredibly valuable for our current development stage. In the first quarter, we completed the proof of concept together with the program partner, focusing on testing our technology in the scenarios they define as highly relevant for their needs. The conclusions are positive, showing that our solution with the implemented updates performed well in the defined scenarios. Overall, we gained a better understanding of the partners' requirements and how to adapt the product to meet them. So the collaboration confirmed the potential of our technology and gave us very valuable input for the continued development of our MVP. The dialogue is ongoing and the partner is expected to be involved in upcoming evaluations as well.
I see. And this year, you're moving BlincVision from a prototype to a minimum viable product. What does that actually mean?
Yes. For us, moving from a prototype to an MVP is a big step forward. That is to showcase what BlincVision really can do, especially in speed, in detecting pedestrians and triggering breaking in specific traffic scenarios. The MVP we are working on will be tested in real customer environment during Q3 and Q4 and completely stand-alone without any need of current resources or any development-specific equipment. To support that, it needs to be easy to install, reliable in use and allow for smooth collection of data and analysis. Based on the MVP valuation feedback, we will then adapt the design further to fit the future integration and customer-specific use cases and requirements.
I understand. Exciting. The product development plan is ambitious for 2025. How are you building the organization to support this phase?
Right now, we're strengthening the team with key expertise to support the next phase of our development. We are hiring in areas such as software development, computer vision, AI and systems engineering, all important to bring the product closer to a finished solution. And if anyone is watching this and has experience in any of these fields, you're very welcome to apply. You'll be working with a truly fantastic team and cutting-edge technology that's about to revolutionize safety.
Okay. So your MVP is planned to be ready for testing in a customer vehicle during the third quarter. Could you tell us a bit about the level of interest you're seeing and what you consider when selecting potential partners?
We are in dialogue with a few promising partners to -- and we plan to start MVP valuations during the third quarter. When selecting partners, we look for things like technical fit, relevant use case, long-term business potential, of course, and geographical location. The feedback will be very important as we continue to refine the product, build the foundation for future discussions around scaling the technology itself.
Moving over to more business development questions. Could you, Lars, share how Terranet is working towards commercialization and engaging with potential customers?
Well, first of all, I think we have a very broad approach. We talk to a lot of different types of industry players. And I think that when you sit on a technology asset like Terranet does, you have to have an exploratory approach to customers. BlincVision right now is very focused on ADAS and AD. And as soon as we launch that, then for the partners that are interested, we will take a discussion with them about when and how they will evaluate it. And if that evaluation goes well, then we will sit down with them and discuss how can we bring this product to market.
Okay. Good to hear. In December, Terranet signed a collaboration agreement with a player in the mining industry. How has that progressed?
Well, kickoff has been held. Next stage is really for our engineers to go and visit the site where the testing will be done. And then finally, the mining industry is a very harsh environment. So it will be a very, very good test of our technology in harsh conditions. So we will very much look forward to what the results will be from that trial.
Okay. Let's turn to some financial matters. In April, Terranet announced a direct share issue and a rights issue pending final approval at the 2025 AGM. What does this mean for Terranet going forward?
Well, a lot. Financing is key for a company in the stage where Terranet is. But the financing was SEK 8.2 million in a directed issue, which actually has already received. On top of that, there is another directed issue of about SEK 16.2 million and a repair issue where we -- 2 existing shareholders offer at the same conditions at the right of issues of another SEK 15 million. So in total, we are guaranteed SEK 40 million. On top of that, there is a TO in December that could bring in another SEK 15 million. In our investor inbox, we've received a lot of questions on how long this money will take us. And the way we are planning our cash expenditure is that including the TO, then we should be able to take the company into Q2 next year.
Great. Last question here in the interview section. As the new CEO, what will your priorities be going forward?
Well, Terranet is already an established company. It has a product idea, it has a team and it has a strategy. So to some extent, I'm coming to a table when it comes to that. Where I will be focusing, and my background is in sales, will be, of course, revenues, how do we come to revenues as fast as possible because I know that's what everyone wants to see. Also exploring different types of partnerships and finally, also working with the maturity of the company. We are in an industry where there are very high requirements, both on the company but also on the products when it comes to certifications. So we need to start work with those as well.
Great. [Operator Instructions] We received a lot of questions, which is very nice. In which other application areas do you see BlincVision creating customer value?
Well, I think there are many different areas and many different configurations. But right now, BlincVision is solely focused on ADAS and AD, and that's the way it should be until we've launched it. Once we have launched the MVP, I think it is time for us to sit down with other industry players and see how can we take this technology asset and use it in their applications.
And is the current organization well positioned to support commercialization or will further expansion be needed?
Well, as Pierre said, we are expanding in our R&D area. The customer support for the MVPs will be done by our R&D organization. There will be a delicate balance between developing product further but also supporting customers. So I think we are covered in that area with the plans that Pierre already has. And on the sales side, I don't think we need any additional people. So we're fine there.
This is a good question. BlincVision is a complete system, including both software and hardware. Could it become relevant to sell individual components separately?
Yes. If you break it down, there are mainly 3 main, let's say, system components to BlincVision. And we have the laser scanner. We have the event camera, stereo, and we have the AI trained perception stack, right? There's great value in all 3 of these system components, and we have already had companies reach out and -- to us regarding, for example, using the event cameras in other applications than what BlincVision initially was -- has been targeting. So that being said, yes, selling individual components in the future is a possibility.
Okay. Nice. Moving over to the question about how many customer vehicles will BlincVision be tested in during the third quarter.
Yes. Good question. The exact number is still being set as part of the MVP rollout strategy. As MVP systems cost quite a bit in its current prototype form and the organization is still operating on quite a slim budget, we plan for systems evaluations for a handful of customers during the second half of the year.
I understand. We received a question here that why haven't you sent out a PM about the PoCs done and finished.
Well, from what you can see from today's report and what Pierre said, we have completed the PoC. I think the main communication tool for a small company like Terranet are really the quarterly reports. So we have reported on it in the quarterly report. Now we spend a lot of efforts into the quarter report, and we do webcast such as this where we can answer the shareholders' question. So we think that is a good format to answer questions about things such as the proof of concepts.
Okay. Next question, do you see any companies currently developing comparable technology that might be close to your stage of readiness or performance level?
There is, of course, improvements in most of the sensor technologies that we're seeing today. But to date, we don't see anything coming even close to the responsiveness of our system.
Okay. I think this is a very relevant question at this time. Can the technology be used in the defense sector? Or is this something you're looking at?
Definitely. And of course, if you look at how much money is going to be invested in the defense sector, we would be crazy not to look at how can we use our technology in that sector. But it's a part of, like the question I answered before, other types of industry, but definitely, defense is high on the priority list.
Okay. Let's see here. I think that was the last question at this time. So I give the word back to you, Lars and Pierre, for any closing comments.
Well, thank you for listening to this webcast. As you know, you can always subscribe for our press releases and news on our website. You can send questions to our investor inbox and you can follow us on LinkedIn. So with that, thanks very much for listening, and hope to see you soon in the future.
Thank you.
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