Audientes (AUDNTS) Q3 2024 earnings summary

Executive summary

• Expanded market presence in Q3 2024 through strategic partnerships and product launches in China, Japan, India, and Europe.

• Joint venture with Shenzhen Hengtong Partner Co. in China operational, marking the first licensing business relationship.

• Over 1,000 localized Companion products shipped to Japan; retail launches and collaborations planned for Q4.

• Product portfolio includes self-fitting hearing aids and hearables, with new BTE/RIC hearing aid development targeting China and India.

• Strategic pivot to software platform licensing for OEMs and brands, expanding revenue streams.

Financial highlights

• Q3 2024 sales revenue was TDKK 63, mainly from initial pre-paid deliveries to China, up from TDKK 8 in Q3 2023.

• Pending pre-paid revenue of TDKK 560 expected to be recognized in Q4 2024.

• Q3 2024 EBITDA was TDKK -901, improved from TDKK -1,838 in Q3 2023; cumulative Q1-Q3 2024 EBITDA at TDKK -3,930.

• Q3 2024 net loss was TDKK -2,513, compared to TDKK -3,716 in Q3 2023; Q1-Q3 2024 net loss at TDKK -8,253.

• Cash and cash equivalents at period end were TDKK 8; equity ratio at 13.1% (down from 25.0% in Q3 2023 and 27.9% at end 2023).

Outlook and guidance

• 2024 revenue guidance revised to DKK 1.5–2.5 million (previously DKK 3.8–4.8 million), mainly from Japan, China, and India.

• 2024 EBITDA projected at DKK -4.5 to -5.5 million (previously DKK -4.0 to -5.0 million).

• Some new product orders shifted to 2025; expanded sales platforms in Asia and Europe expected to drive growth in 2025.