Watchlist Update: Elliptic Labs (ELABS.OL)

Finansavisen interview highlights margin upside and market reach

Appearing on Finansavisen’s Børsmorgen on Friday, 23 May 2025, Elliptic Labs CEO Laila Danielsen shared a wide-ranging update on the company’s commercial traction, product roadmap, and go-to-market strategy. For followers of this under-the-radar software gem, the conversation offered both insight and reassurance.

This Watchlist Update builds on our recent earnings call summary – where we covered key numbers, analyst reactions, and Q&A highlights from the Q1 2025 report – and zooms in on the strategic signals from Danielsen’s live interview.

Here are the key takeaways:

Laptop Growth Just Getting Started

The smartphone segment is relatively mature (~30–40% penetration with existing customers), but laptops remain early-stage:

“We’re far below 10%—we’ve barely begun in the laptop market.”
(«Vi er langt under 10 % – vi har knapt begynt på laptopmarkedet.»)

Despite limited public disclosures, growth is material:

“We’ve launched with 23 laptop models with Lenovo—50% more than all of last year.”
(«Vi har lansert med 23 laptopmodeller med Lenovo – 50 % mer enn hele fjoråret.»)

Due to OEM policy, only two models were announced, making this scale invisible to most investors:

“We’re only allowed to announce two—so the rest gets revealed in the quarterly reports.”
(«Vi får bare lov å annonsere to – resten vises i kvartalsrapportene.»)

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Smartphone Expansion Still Has Room

Elliptic continues to grow in mobile, both through deeper penetration and new customers:

“We’re in about 30–40% of the smartphones among our existing customers—but we can still add more customers.”
(«Vi er liksom sånn 30–40 % inne hos kundene våre – men vi kan fortsatt få flere kunder.»)

They recently launched a new smartphone feature that enables tap-to-share functionality across ecosystems:

“We just announced a new product where you tap two phones together and start sharing info—across Android and iPhone.”
(«Vi har akkurat lansert et nytt produkt der du kan tappe to telefoner sammen og begynne å dele informasjon – mellom Android og iPhone.»)

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Strong 12-Month Momentum

Danielsen highlighted the company’s improving fundamentals:

“In the past 12 months, revenue is up more than 56%, and costs just over 6%—that helps the margin.”
(«Inntektene har økt litt over 56 %, og kostnadene bare litt over 6 – det hjelper jo på marginen.»)

This underscores Elliptic’s scalable business model and operational discipline.

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Scalable Platform, Lean Structure

One recurring theme was operating leverage:

“We can double or triple revenue without meaningfully increasing costs.”
(«Vi kan fortsatt doble eller triple inntektene våre uten å øke kostnadene nevneverdig.»)

Headcount growth has been modest, even as project count rises:

“We’re talking under five hires—maybe a couple of project managers.”
(«Vi snakker under fem nye – kanskje et par prosjektledere.»)

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Long Sales Cycles, But High Stickiness

Selling into global OEMs takes time, but the upside is long-term embedded value:

“You don’t just work with one department—you have to prove success first, then scale to more teams.”
(«Du jobber liksom ikke bare med én avdeling – du må vise at det funker først, så sprer det seg.»)

The payoff is beginning to show:

“Now we’re in a better position—we’ve started to spread across departments and into more deliveries with the same customer.”
(«Nå er vi i en bedre posisjon – vi har begynt å spre oss på tvers av avdelinger og flere leveranser.»)

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Big Partners, Bigger Ecosystem Play