Flat Capital (FLAT) Q2 2024 earnings summary

Executive summary

• NAV per share fell 7.9% quarter-over-quarter to 7.55 SEK, mainly due to a full write-down of the Getir holding (-32.6 MSEK), reducing total NAV to 370.3 MSEK as of June 30, 2024.

• H1 2024 net result was -42.5 MSEK, compared to -28.8 MSEK in H1 2023, with a per-share result of -0.87 SEK.

• Investments in the quarter totaled 17.2 MSEK, including new stakes in xAI (Elon Musk's AI venture) and Physical Intelligence (AI robotics).

• Portfolio remains heavily weighted toward unlisted growth companies, with OpenAI, Instabee, Klarna, Truecaller, and Harvey as the five largest holdings.

Financial highlights

• Q2 2024 value change in securities was -32.2 MSEK, mainly from Getir; excluding Getir, value change was +0.3 MSEK (including FX effects).

• Operating costs for Q2 were 1.7 MSEK (1.74% of average NAV annualized), down from 3.2 MSEK in Q2 2023.

• Cash and equivalents at period end were 125.6 MSEK, with no significant debt.

• H1 2024 investments reached 37.8 MSEK, down from 58.2 MSEK in H1 2023.

Outlook and guidance

• Management sees positive signals from several AI-related portfolio companies, with expectations of higher valuations in upcoming funding rounds in H2 2024.

• The company maintains a strong cash position and expects continued high investment activity.