Audientes (AUDNTS) Q4 2024 earnings summary

Executive summary

• Expanded market presence in Japan, China, India, MENA, and Europe, launching localized products and building new partnerships, including a licensing-based joint venture in China.

• Shifted business model to include software platform licensing alongside traditional product sales, targeting underserved and emerging markets.

• Focused on self-fitting and expert-assisted hearing solutions for both OTC and professional channels, with new product development such as the Receiver-in-Canal (RIC) hearing aid.

• Positioned for growth and profitability by 2026, leveraging new business models, product innovation, and expanded distribution.

Financial highlights

• Full-year 2024 sales revenue was TDKK 840, below the initial DKK 1.5 million target and prior year, due to go-to-market delays and revenue recognition adjustments.

• Q4 2024 product sales were TDKK 540; services/other income TDKK 210.

• EBITDA improved to DKK -5.4 million in 2024 (from DKK -7.3 million in 2023), within guidance; Q4 2024 EBITDA was DKK -1.5 million.

• Equity decreased from DKK 4 million to DKK 1.2 million, with an equity ratio of 13.6% at year-end.

• Staff costs decreased 45% year-over-year, improving cost efficiency.

Outlook and guidance

• Expects significant revenue growth in 2025 from increased product sales, licensing revenue, and product creation services.

• Licensing revenue of TDKK 600 anticipated as part of capital contribution to China JV.

• Targeting operational profitability by 2026 through revenue growth and cost optimization.

• 2025 guidance to be provided after further solidifying assumptions and funding plans.