Smart Eye Year-End Report Q4 January - December 2023 - Seite 2

The fourth quarter is characterized by an increased growth rate compared to the previous quarter. The organic growth came in at 50% (32% in Q3 2023). Again, it's Automotive that leads the way thanks to the rollout of our production programs. We have costs under firm control and continue to execute our business plan. 2023 ends in a fantastic way, 2024 looks even better.

Automotive

In accordance with our plan, the automotive volumes continued to rise in the quarter. The increase in demand can be attributed to the European regulation going into effect this year, affecting the decisions of OEMs in Europe as well as in other markets. The design wins that we announced during 2019 and 2020 are the cars that now reach production readiness. That's why our automotive business area is growing with 121% (83% in Q3 2023) compared to the same quarter last year.

Korea is still the primary growth engine, being well on their way to implement DMS broadly. Volumes have yet to pick up in other markets, although they are growing from a low level. We expect other markets such as Japan, Europe and the US to mature in the quarters to come. Simultaneously there's a strong market pull for Interior Sensing in the automotive premium segment. We are very well positioned for upcoming business in this new and exciting area.

Our new development programs are progressing as planned, and we see growth in the AIS product. The requests are coming both from fleet customers as well as from commercial vehicle OEMs eager to fulfill the European regulations. We expect a steady ramp up of AIS during this year.

Behavioral Research
The Business Area has really picked up speed since last year, growing at a very good 29% (17% in Q3 2023). This means that we are increasing our market share, thanks to a broad offering of software, hardware and services. We are confident that the profitable growth will continue this year, one of the cornerstones in turning the whole company profitable. We are as always exploring new innovations, whether they manifest themselves in our core technologies or how we package them to the customers. The research market for human insight technology is still in an early stage and continued growth is to be expected, far into the future.