Audientes (AUDNTS) Q2 2024 earnings summary

Executive summary

• Expanded market presence in China and Japan via strategic partnerships, including a joint venture with Shenzhen Hengtong Partner Co. for the Greater Chinese market, with Audientes holding a 40% stake.

• Secured a frame supply agreement with SimplyJITH Investment Corporation to distribute products in India, Middle East, Africa, and Asia.

• Fully localized Companion products shipped to Japan; initial marketing campaign to start in late Q3 2024, with retail launch in Q4 2024.

• Delayed product deliveries to China and Japan led to lower Q2 2024 revenue, with significant sales now expected in H2 2024 and early 2025.

Financial highlights

• Q2 2024 revenue was TDKK 12, down from TDKK 1,042 in Q2 2023; H1 2024 revenue was TDKK 27, down from TDKK 1,253 in H1 2023.

• EBITDA for Q2 2024 was TDKK -1,713 (Q2 2023: TDKK -1,838); H1 2024 EBITDA was TDKK -3,029 (H1 2023: TDKK -4,334).

• Net loss for Q2 2024 was TDKK -3,139 (Q2 2023: TDKK -3,603); H1 2024 net loss was TDKK -5,740 (H1 2023: TDKK -7,325).

• Cash and cash equivalents at June 30, 2024, were TDKK 47, down from TDKK 434 at end of 2023.

• Equity at June 30, 2024, was TDKK 3,491, with an equity ratio of 30.9%.

Outlook and guidance

• Sales recognition for 2024 revised to 3,500–4,500 units (previously 5,000–6,000), mainly in India, Japan, and China.

• Expected 2024 revenue in the range of DKK 3.8–4.8 million (previously DKK 5–6 million).

• 2024 EBITDA forecast revised to DKK -4.0 to -5.0 million (previously DKK -3.5 to -4.5 million).

• Ven™ medical grade hearing aid for China and a new BTE/RIC product for India targeted for launch in 2025.

• Ongoing focus on software licensing and product development services as part of the business model.