Elektron turnaround?

[ccr]

It was mentioned in some posts that Elektron had incurred substantial losses in 2018 and 2019. I was interested in their more recent figures and just found their 2020 accounts (published in June this year) on a Swedish website called hitta.se.

I don’t speak Swedish, but from what I understand, their total sales increased from approx 140m SEK in 2019 to 160m in 2020, and they moved from a loss of 17.5m SEK in 2019 to a slight profit of 2.6m in 2020. (By the way, with 1 SEK being roughly 0.1 EUR, it is still a rather small company…)

I found this reassuring, hence my sharing here.

Edit: added the document itself… 5567138093_2020-12.pdf (1.1 MB)

[LyingDalai]

Following information is only relative and partial, but it’s interesting nonetheless:

Thomann Sales Rank Elektron Elektron Digitakt

[Skurdd]

Wow the Cycles is doing very very well

[Sundaybeat]

It’s impressive to find Soma Pulsar in the top five with that price, not exactly for the masses…

[basehead617]

where’s the TR8S?

[gerkinear]

It’s in category grooveboxes.

Imho groovebox vs drum computer is nowadays not really distinctable. Digitakt is for me more a groovebox than a drum computer.

[dtr]

“The rank reflects the current total number of sales, and takes into account the amount of stock available.”

If current stock is factored in, and we don’t know the algorithm, then this list really doesn’t tell us anything about actual sales numbers I’m afraid.

[acidhouseforall]

yep… we don’t know the period. Given that the LXR-02 is high-ranked, it must be pretty short.

[reeloy]

…no worries, goys and birls…too many swedish already classics out there to buy out…and to die out…
plus all the myth…plus all the cult…plus even one still and ongoing bestsella since more than a decade…plus lesson learned after quite some overstretch…
and i’m not aware of any other company in this biz, that could call on such a strong fan base…
so, if we all buy a syntakt next year…the swedish sonic success story will outlive us all…

[J0n35y]

On the face of it, it is a positive indicator but I’d be more interested in year end cash positions and cash flow.

You can record massive losses for multiple reasons while still being a very healthy company. The opposite is true too. Those 2019 losses may have included huge write offs.

I’d imagine the accounting for a company like elektron would be pretty interesting actually. Well, interesting to those accountants in our midsts. How they value and capitalise their R&D and how they manage WIP and the likes would make for good reading.

[ccr]

I agree - it would be interesting to have someone proficient in both Swedish and in accounting to have a look at the doc posted above…

[Schnork]

Imho the list is at times highly suggestive and often favors sales, gear being discontinued etc.

More a tool than statistics.

[dtr]

Exactly. It s a sales tool.

[craig]

I’m ignoring the fact it’s not a true sales list and revelling in the fact that Behringer are getting spanked by Elektron, Erica, and Soma

[sabana]

You come here looking for musical inspiration and you end up with an Accountancy 101 course

[aortan]

Allabolag is a good site to look up swedish companies.

Yeah you are correct. They did make a profit in 2020

Source: Elektron Music Machines MAV AB - Företagsinformation

[aortan]

Turnover is moving around more or less the same level since 2017

[plusn]

The loss could be the investments necessary to get Overbridge out of the door. They also got fresh capital recently from a swedish investment company, right?

[micabeza]

Daniel’s golden parachute when he left in 2019?

Edit: and am I reading that right revenue was about 15m US in 2020?

And let’s have a fun survey. If Elektron were to offer non dividend paying stock, would you invest and how much? I’d probably pass.

[aortan]

I mean a loss of 170k SEK in 2019 is nothing compared to their turnover as you can see on the bar chart.

Especially not for a company that received VC and is scaling up