About Net Insight

Business concept

Net Insight is defining new ways to deliver media. Net Insight is driving the transformation of video networks with open IP, virtualized and cloud solutions that enable our customers to simply and costeffectively create live experiences. With the product area Media Networks, Net Insight is opening up new routes for customers to produce and deliver content to viewers anywhere. Revenues are generated through sales of hardware and software solutions and services. The 5G synchronization product area enables cost-effective, more secure and faster roll-out of 5G networks.

Business model

Revenues are generated through sales of hardware and software solutions and services.

Customers

Broadcasters, service providers, production companies, telcos and enterprises. Net Insight has over 500 customers in more than 70 countries.

Value creators

The solutions are deployed by the world’s leading media brands to keep their mission-critical media networks running smoothly. New technology is enabling these players to adopt new, more cost efficient and flexible ways to produce and deliver content. Net Insight can play an important role to support our customers making this gradual transition.

Net Insight benefits from underlying market trends like the general increase in video traffic, live streaming and file-based transfers. Other trends supporting the company’s growth prospects include the broader coverage of live events, move towards remote production and increased use of Internet and cloud for media production and transport.

Market and trends

The media industry is undergoing extensive transformation at several levels, and the transition towards IP and the cloud is progressing rapidly. At the same time, there is a growing need for remote and distributed production in order to be able to produce and transport content more efficiently and flexibly. Net Insight’s new time synchronization solution opens up a new market in 5G mobile networks, an area that will experience strong growth in the coming years.

  • Transition to IP and cloudbased services in media continues
  • Increased need for remote and distributed media production
  • From satellite to cloud
  • Need for increased bandwidth and new video formats
  • Secure transport of media streams increasingly important
  • Time synchronization in mobile 5G networks

“Our deep expertise in video transport and time synchronization makes us unique and well-positioned, which opens up new, exciting business opportunities”
Per Lindgren, CTO Net Insight

Strategy with a focus on long term profitable growth

Net Insight is continuing to deliver on the strategy adopted in 2020, which is aimed at achievinglong-term sustainable growth. Through three strategic priorities – establishing our internal foundation, developing our core business and expanding into adjacent technology and market segments – we took new steps forward and raised our level of ambition during the year.

  • Establishing our internal foundation
  • Developing our core business
  • Sustainable partner in the transition towards IP and cloud
  • Increased sales in new customer segments
  • Increase share of repeat license revenues
  • 5G time synchronization
  • Expanding into adjacent technology and market segments

“With our clear strategy, we are taking important steps forward and paving the way for long-term profitable growth.”

Crister Fritzson,
CEO of Net Insight

Why invest in Net Insight´s shares

Net Insight has a strong position on the rapidly expanding market for media transport over IP, Cloud and time synchronization, a proven ability to commercialize leading-edge technology and a strong financial position that gives the Company the freedom to act when required. The Company is active in a global market, and has a well-established brand and employees with broad and deep competencies in media solutions and synchronization.

Strong position in a rapidly evolving market

For 25 years, the largest sports, news and entertainment events have been delivered to audiences around the world using Net Insight’s secure, reliable media transport technology. The market is now undergoing a major shift towards open
IP- and cloudbased solutions, in a rapid process that generates significant potential. With a broad product portfolio for fiber, IP- and cloudbased media transport, the Company is well-positioned. This makes Net Insight a strong partner for its  customersin the transition faced by the industry.

Proven ability to commercialize leading-edge technology

Innovation has been a recurring theme throughout Net Insight’s history. The Company has continuously developed new products and solutions, ranging from the underlying technology of the Nimbra platforms to the Sye platform that was sold to Amazon in 2020 and, recently, solutions for GPS-independent synchronization of 5G networks. After the breakthrough order from Türk Telekom in 2021, Net Insight secured deals this year with Three Sweden and one of Canada’s leading mobile operators.

Profitable growth and strong financial position

Net Insight’s strong financial position enables flexibility and ensures the right conditions for planned investments in tech development and sustainable growth. Increased sales and a higher proportion of recurring revenue from license-based customer offerings stabilizes sales and reduces sensitivity to individual transactions. Full-year sales for 2023 increased by 17.7% on the previous year, exceeding our long-term target of average growth above 15%. The operating margin (EBIT%) was 12.7% for the full year 2023, and 18.1% in Q4, compared to our long-term target operating margin of 20% for the period ending in 2027.  The Board of Directors decides annually on dividend payment to shareholders, and in the past two years we have returned capital to shareholders through share repurchase.

Media Networks

With a strong forward-looking vision for IP and cloud solutions, Net Insight helps the world’s leading media companies to simply and cost-effectively produce and deliver content for viewers – regardless of where they are located. Net Insight’s powerful portfolio with Nimbra and Aperi products offers exceptional breadth in terms of managing fiber, IP and cloudbased media transport, which means that the company is well positioned in the ongoing media industry transformation.

”Net Insight delivers market-leading technology for media transport that is used for the world’s largest live events.”
Christer Bohm,
VP Product Management
Net Insight

Increased demand for open solutions

To create flexibility and openness and avoid locking in products and standards, the whole industry is moving towards standard solutions. Our proven Nimbra solutions can provide IP Media Gateway to new and existing customers, who can later easily integrate them into future IP networks. Our customers benefit from our long history of reliable media networks with our Nimbra platform.

Increased need for security

This greater flexibility and openness also makes media more vulnerable to the risk of external disruption, for instance due to incorrect use or hacking. There is a great need to monitor quality and control access, traffic and IP addressing. Net Insight’s Trust Boundary, which is available in all solution areas, has the advanced functions needed to make a seamless transition to IP – in a safe, overseeable way.

Focus on usability

As the media industry progressively transitions to IP- and cloudbased workflows, there is growing demand for products and applications to be simple to manage and implement. This is also one of our most important customer promises. Our scalable, software-based Nimbra Edge solution plays a central role in this regard. It is known for being the industry’s most open and easy-to-use cloud solution, and controls live video traffic in a simple manner.

Customers and marketing

Net Insight continues to constantly develop its sales strategy in media to meet the market’s transformation and new requirements and improve customer value. With a skilled global team and competitive solutions, the Company is a strong, sustainable partner. In order to meet the market’s demands, we have introduced five strategic focus areas.

  • Stronger local presence in sales regions
  • Partners are increasingly important
  • Addressing more customer segments
  • Clearer communication
  • Focus on growth areas

“Net Insight’s ability to support existing and new customers on their journey has never been better”
Mårten Blixt, CCO Net Insight

Synchronization for 5G

Net Insight provides critical synchronization in 5G networks

Strong investments are being made in a rapid expansion of 5G mobile networks the world. Even though approximately 500 of the world’s 800 operators have started investing in 5G equipment in their mobile networks, 5G is
still only at the beginning of its development. In 2022, just under 40* operators globally had commissioned a 5G
network dedicated to 5G traffic, both in core and access networks, SA 5G (Stand Alone 5G). In most countries, the expansion has mainly occurred in larger cities, and operators are poised for the next major rollout phase to cover all regions. Unlike 3G and 4G, 5G requires more precise timing in all base stations, which increases the cost of handling synchronization in mobile networks from a few permille of the total rollout cost in 4G networks to approximately 3–5%** in 5G networks.

Because of this change, 5G synchronization is now a fast-growing market that is expected to be worth USD 1 billion by 2025**. Time synchronization is a key function in future 5G networks and is critical in order to be able to use TDD (time-division multiplexing). This in turn gives operators better capacity utilization and opens opportunities for more demanding real-time applications. Our solution is especially advantageous for operators with heterogeneous networks as it does not require upgrades and investment in existing infrastructure. Net Insight continues to constantly develop its sales strategy in media to meet the market’s transformation and new requirements and improve customer value. With a skilled global team and competitive solutions, the Company is a strong, sustainable partner. In order to meet the market’s demands, we have introduced five strategic focus areas.

  • New challenge create opportunities for Net Insight’s Precision TimeNet
  • Sustainable and future-proof for our customers
  • High activity in the development project
  • Customers and deals
  • Establishing a new sales organization

*Global Mobile Suppliers Association (GSA), December 2022.
**Gartner Group, A.T. Kearney report 2021

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