Exalt (EXALT) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was 13.2 MSEK, with 2.5 MSEK from new network-related business and 1.5 MSEK from new product sales, reflecting a strategic shift toward network services and products.

• Organizational restructuring led to one-time costs of 0.3 MSEK in Q2, with similar costs expected in Q3 as the consulting division was discontinued.

• Cash flow was negatively impacted by restructuring and extended payment terms from the largest customer, totaling about -2 MSEK in H1.

• Opened a new office in Uppsala in May, hiring three employees to support network-focused growth.

Financial highlights

• Q2 2024 revenue was 13.2 MSEK, down from 13.5 MSEK in Q2 2023; H1 2024 revenue was 25.1 MSEK, down from 26.0 MSEK year-over-year.

• Q2 EBITDA was 0.1 MSEK (0.6 MSEK in Q2 2023); Q2 EBIT was 0.1 MSEK (0.5 MSEK in Q2 2023); net result for Q2 was 0.0 MSEK (0.3 MSEK in Q2 2023).

• H1 EBITDA was 0.5 MSEK (1.3 MSEK in H1 2023); H1 EBIT was 0.4 MSEK (1.2 MSEK in H1 2023); H1 net result was 0.3 MSEK (0.8 MSEK in H1 2023).

• Cash and equivalents at June 30 were 0.3 MSEK (3.0 MSEK in 2023); including unused credit, liquidity was 2.3 MSEK.

• Total assets at June 30 were 23.9 MSEK (18.8 MSEK in 2023); equity was 4.4 MSEK (2.3 MSEK in 2023).

Outlook and guidance

• Management expects improved cash flow for the remainder of 2024, with no new negative liquidity events anticipated.

• Stable demand is expected for network services, installations, and product sales in H2 2024, with improved recruitment conditions.