Flat Capital (FLAT) Q2 2024 earnings summary

Executive summary

• Net Asset Value (NAV) declined 7.9% quarter-over-quarter to SEK 370.3 million, mainly due to a full write-down of the Getir holding, offsetting otherwise stable portfolio valuations and positive signals from AI-related investments.

• Investments in Q2 included SEK 11 million each in Elon Musk's xAI and AI robotics company Physical Intelligence, both with prominent co-investors.

• Operating expenses decreased to 1.74% of average NAV annualized in Q2, reflecting a continued low-cost structure.

• The company maintains a strong cash position, no debt, and continues to see robust deal flow and investment activity.

Financial highlights

• Q2 2024 profit after tax was SEK -31.9 million (Q2 2023: SEK -3.0 million), with a profit per share of SEK -0.65 (Q2 2023: SEK -0.09).

• H1 2024 profit after tax was SEK -42.5 million (H1 2023: SEK -28.8 million), with a profit per share of SEK -0.87 (H1 2023: SEK -0.90).

• Change in value of financial assets in H1 2024 was SEK -42.7 million, mainly due to Getir (-61.3 million), partially offset by OpenAI (+41.1 million).

• NAV per share as of June 30, 2024, was SEK 7.55 (June 30, 2023: SEK 9.93).

• Cash and cash equivalents at period end were SEK 125.6 million.

Outlook and guidance

• Management expresses optimism for the second half of 2024, citing positive signals from AI-related holdings and potential upcoming IPOs, notably Klarna.

• The company expects continued strong investment activity and deal flow, supported by a robust cash position.