Comintelli (COMINT) Q2 2024 earnings summary

Executive summary

• EBITA turned positive at +0.2 MSEK in Q2 2024, up from -5.3 MSEK in Q2 2023, reflecting progress toward strategic goals.

• Recurring revenues (ARR) reached 30 MSEK at period end, with over 95% of total revenues now recurring.

• SaaS customer share increased to 76% of ARR, up from 42% a year earlier.

• Debt reduced significantly from 3.7 MSEK to 1.9 MSEK during the quarter.

• High customer renewal rates and successful launch of new Professional Services offering.

Financial highlights

• Q2 2024 net sales: 8.1 MSEK (down from 9.4 MSEK in Q2 2023); H1 2024 net sales: 15.8 MSEK (up from 14.2 MSEK in H1 2023).

• Q2 2024 EBITA: +0.2 MSEK (vs. -5.3 MSEK Q2 2023); H1 2024 EBITA: -0.8 MSEK (vs. -7.9 MSEK H1 2023).

• Q2 2024 net income: 0.0 MSEK per share (vs. -0.60 SEK Q2 2023); H1 2024: -0.12 SEK per share (vs. -0.92 SEK H1 2023).

• Cash flow for H1 2024: -0.6 MSEK (improved from -6.7 MSEK H1 2023); cash and bank at period end: 1.8 MSEK.

• ARR at period end: 30.0 MSEK, up 1.6% year-over-year.

Outlook and guidance

• Continued uncertainty in the external environment is affecting the timeline for closing new B2B deals.

• Growth potential seen among existing customers and in target segments: Energy & Chemicals, Pharma & Healthcare, IT & Tech, and Manufacturing.

• Ongoing execution of strategy with focus on sustainable profitability and SaaS migration.