Crunchfish (CFISH) Q2 2024 earnings summary

Executive summary

• Strategic partnership with Tata Consultancy Services (TCS) to provide offline payment solutions for CBDC projects, leveraging TCS's global reach and technology platform, with a non-exclusive, opportunity-based arrangement in place.

• Achieved first commercial deployment of Digital Cash with IDFC FIRST Bank in India, marking a significant milestone, though rollout delays have impacted revenue realization and broader adoption.

• First US patent granted for digital cash technology, with similar protections in Europe, India, and China, strengthening the company's IP position in key markets.

• Focused on divesting Gesture Interaction business to concentrate on Digital Cash, with ongoing discussions for strategic investors and buyers.

• Active discussions with HDFC Bank and NPCI in India for further offline payment solutions, with a device-agnostic approach and new product concepts under consideration.

Financial highlights

• Q2 2024 net sales were SEK 432 thousand, up from SEK 295 thousand in Q2 2023.

• EBITDA for Q2 2024 was SEK -5,867 thousand, an improvement from SEK -7,620 thousand in Q2 2023.

• Loss before tax for Q2 2024 was SEK -7,935 thousand, compared to SEK -8,639 thousand in Q2 2023.

• Cash and cash equivalents at quarter-end were SEK 12,503 thousand, up from SEK 9,130 thousand a year earlier.

• Investments in intangible assets for Q2 2024 totaled SEK 4,159 thousand.

Outlook and guidance

• No commercial deployments of Digital Cash for CBDC expected in 2024 beyond the Digital Rupee.

• Focus on securing long-term financing, with a revenue-sharing model under negotiation and a term sheet expected soon.

• Strategic priority to achieve breakthrough deals at the network level (e.g., with major payment platforms or central banks) and to close more individual bank or provider deals.

• Potential for government or EU grants for research, though not actively pursued due to resource constraints.