Airthings (AIRX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached USD 10.0 million, flat or down 1% year-over-year, with strong 21% Consumer segment growth offsetting a 42% decline in Business segment revenues.

• Completed company restructuring, reducing workforce by 20% and incurring USD 0.9 million in one-off costs, expected to lower annual operating expenses by USD 2.5 million from 2025.

• Launched Wave Enhance and Airthings Renew, with positive feedback from Amazon, Nordic retail partners, and the market.

Financial highlights

• Gross profit was USD 5.8 million, down 7% year-over-year, with gross margin at 59% (down 3pp), mainly due to higher consumer and retail sales mix.

• EBITDA loss of USD 1.3 million (margin -13%), including USD 0.9 million in restructuring costs; EBIT was negative USD 1.9 million.

• Net loss for the quarter was USD 1.75 million, with basic and diluted EPS at -0.01.

• ARR reached USD 4.3 million, up 6% year-over-year, supported by software sales and low churn in the business segment.

• Cash balance at quarter-end was USD 9.0 million, with total available liquidity of USD 15.0 million.

Outlook and guidance

• Expects strong Consumer segment growth in Q4, driven by seasonal demand and retail events, while Business segment revenues are expected to be lower year-over-year due to a strong prior-year comparison.

• Guides Q4 2024 revenues between USD 9.5–12.0 million and ARR of USD 4.3–4.5 million.

• Full effect of 20% workforce reduction to reduce annual OPEX by USD 2.5 million from Q1 2025.

• Inventory days targeted to reduce to 250 by year-end (from 333 at Q3 close).

• Potential Q4 revenue impact up to USD 1.2 million due to possible inventory buyback for defective batteries.