Flowscape Technology (FLOWS) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 with incoming orders of 6.5 MSEK, including 2.4 MSEK in ARR, among the highest for a single quarter; net sales reached 12.3 MSEK, the second highest to date.

• Full-year net sales were 44.2 MSEK, slightly below 2023 due to lower one-off hardware/software revenues; ARR grew 13% to 34 MSEK.

• Cash position strengthened to 10.7 MSEK, meeting the goal of positive cash flow for the year.

• Organizational changes implemented to focus on Nordic market and improve new sales; cost reductions and leadership changes executed.

Financial highlights

• Q4 net sales: 12,232 TSEK (15,577 TSEK in Q4 2023); full-year: 44,178 TSEK (49,580 TSEK in 2023).

• Q4 EBITDA: 2,625 TSEK (5,556 TSEK); full-year EBITDA: 5,543 TSEK (7,578 TSEK).

• Q4 net income: 459 TSEK (3,570 TSEK); full-year net income: -2,905 TSEK (-2,281 TSEK).

• Q4 EPS: 0.023 SEK (0.182 SEK); full-year EPS: -0.148 SEK (-0.116 SEK).

• Cash flow for the year: 495 TSEK (-2,691 TSEK in 2023); cash at year-end: 10,720 TSEK (10,225 TSEK at start of year).

Outlook and guidance

• Entering 2025 with a new management team, increased focus on the Nordic home market, and a foundation for continued profitable growth.

• Reduced engagement in the Middle East due to long sales cycles; shifting to a partner model for cost efficiency.