Airthings (AIRX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 17% year-over-year to $8.7 million, driven by 37% growth in the consumer segment, especially in North America, while the business segment declined 30% due to commercial real estate headwinds and longer sales cycles.

• Gross margin remained stable at 62% despite a higher share from the consumer segment.

• Strategic review led to a sharpened focus on health-driven indoor air quality solutions, a 20% workforce reduction, and a target to achieve positive EBITDA in the second half of 2025 and full year 2026.

• Direct and repeat consumer sales surged, with direct sales up 89% and repeat sales accounting for 26% of total.

• Major US school contracts and expanded device deployments at a Fortune 100 client were secured.

Financial highlights

• Q2 revenue: $8.7 million (+17% YoY); H1 revenue: $18.2 million (+13% YoY).

• Q2 gross profit: $5.4 million (+18% YoY); gross margin stable at 62%.

• Q2 EBITDA loss: $1.7 million (margin -19%), improved from $2.7 million loss in Q2 2023; H1 EBITDA loss: $3.5 million.

• Q2 net loss: $2.1 million; H1 net loss: $2.9 million, improved from $4.3 million loss.

• Cash balance at quarter end: $11.2 million, with total available liquidity of $17.2 million including a $6 million credit facility.

Outlook and guidance

• Q3 2024 revenue guidance: $9.5–$11.5 million; ARR guidance: $4.3–$4.5 million.

• Positive EBITDA targeted for the second half of 2025 and full year 2026.

• Strategic initiatives in H2 2024 include a leaner organization, unified value proposition, and new product launches.