Flexion Mobile: Convincing Gross Margin Expansion

Research Note

2020-06-12

12:52

Revenue was nearly 11% above Redeye’s estimates during the quarter. The gross margin improvement was however the strongest positive signal in our view (14% instead vs our estimate of 12%). We believe Flexion Mobile is in a good position and has increased its negotiation strength during the last quarters due to the growing portfolio of content and generated revenue in this niche market. We have increased our base case valuation somewhat.

TO

KL

Tomas Otterbeck

Kristoffer Lindström

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