Tecnotree expects in 2023:
• Revenue to be higher by 7%-15% compared to 2022
• Operating profit (EBIT) to be higher by 10%-20% compared to 2022
Assumptions behind the prospects
The demand for our products and solutions continues to grow and we expect to receive increasing orders from new and existing Tier 1 operators. The investments in Artificial Intelligence and Machine Learning in the new verticals of Telco, Healthcare and Fintech are strategic to the company and in line with emerging industry trends, which will yield long term benefits.
In 2023, these planned investments are expected to have an adverse impact on Tecnotree’s EBIT in the short term. Such investment is necessary to further cement our position in the AI/ML space.
Tecnotree has seen significant growth in the last couple of years. In order to ensure competitive advantage in its core digital business, Tecnotree will implement cost rationalization in Q2 of 2023 to the tune of 5 - 7%. These cost savings are expected to be realized in Q4 of 2023 and 2024, thus positively benefiting the company's profitability.
Foreign exchange rates are expected to remain at approximately current levels.