Irisity (IRIS) investor relations material

Market overview and positioning

• Video surveillance market valued at SEK 24 billion in 2023, growing at 8.5% CAGR; standalone video analytics segment expected to grow at 13.6% CAGR to SEK 1.6 billion by 2028.

• Hybrid solutions dominate, requiring both cloud and on-premise deployments; subscription models are key for both.

• Strong integration with major video management system partners like Genetec and Milestone, enhancing reach and scalability.

• Key growth sectors include city surveillance, transportation, healthcare, and education, with over 50% of revenue from existing customers.

• Large installed customer base and strong partner network support market penetration.

Strategic transformation and operational efficiency

• Cost reduction program targets SEK 40 million in annualized savings, mainly from personnel costs, with full impact expected by Q1 2026.

• R&D operations consolidated in Gothenburg and Budapest for efficiency; knowledge transfer from Israel ensures platform continuity.

• Streamlined management structure and centralized leadership to align costs with revenue.

• Focus on recurring revenue and partner-first market approach to drive profitability and reduce direct sales costs.

Revenue model and financial update

• Annual recurring revenue at SEK 48 million, with a target of SEK 60 million by 2026.

• Three main recurring revenue streams: SaaS for central monitoring, security as a service, and software upgrade plans.

• Rights issue of SEK 26.1 million launched, fully secured by commitments and guarantees; proceeds to support market expansion and working capital.

• Share price at SEK 0.18 in October 2024, with analyst upside targets up to SEK 0.70; company trades at a discount to AI SaaS peers.