Tobii is a Swedish technology company specializing in eye tracking and attention computing, with a current stock price of 1.86 SEK. The company, headquartered in Danderyd, Stockholm, has around 670 employees and is a market leader in eye tracking technology with over 700 patents. Following the spin-off of Tobii Dynavox in 2021, Tobii now focuses solely on eye tracking applications, particularly in the areas of driver monitoring systems (DMS) and occupant monitoring systems (OMS).
Anand Srivatsa, who previously worked at Intel, serves as the CEO of Tobii since the spin-off. With a background in tech giants like Intel, Srivatsa brings a wealth of experience to the company. The three founders, Mårten Skogö, Henrik Eskilsson, and Johan Elvesjö, are still significant shareholders, each owning approximately 6% of the company’s shares.
Tobii’s business is divided into three main areas: Product & Solutions, Integrations, and Autosense. Product & Solutions offer a range of hardware and software products for eye tracking applications in research and gaming. Integrations focus on licensing Tobii’s algorithms and IP to OEM manufacturers, while Autosense targets the automotive industry with DMS and OMS solutions. The acquisition of Autosense marks Tobii’s strategic shift towards automotive applications, with new EU regulations mandating DMS in all new cars by 2026.
Despite its strong product portfolio and technological expertise, Tobii has faced challenges in achieving profitability. The company reported a decline in revenue in 2023, driven by lower sales in the Integration segment. While the acquisition of FotoNation boosted revenue temporarily, these profits are expected to decline as contracts expire.
To address its financial position, Tobii has implemented a cost-saving program to reduce operating costs by 200 million SEK annually. The company also divested certain assets acquired from FotoNation to streamline its operations. However, Tobii’s net debt remains high, raising concerns about its ability to achieve profitability without additional capital.
In conclusion, Tobii’s technology and patents hold significant value, but the company’s shift towards automotive applications and financial challenges create uncertainty about its future prospects. While Tobii has the potential to capitalize on the growing DMS market, its high debt levels and profitability targets pose risks for investors. With a cautious approach, investors should monitor Tobii’s financial performance and strategic decisions before considering an investment in the company.