Greater Than (GREAT) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 reached 12.2 MSEK, up 123% year-over-year, with operating result improving to +0.1 MSEK, a 10 MSEK increase from Q2 2023.

• Operating costs reduced by 25% year-over-year, now at 14 MSEK, reflecting ongoing efficiency initiatives.

• Number of users increased by 47% compared to Q2 2023, supporting recurring revenue growth.

• Cash flow was negatively impacted by working capital movements, but 11 MSEK in additional inflows were received post-period from tax refunds and receivables settlements.

• A 4.5 MSEK provision was made in Q2 due to a customer contract renegotiation, impacting net sales.

Financial highlights

• Q2 2024 net sales: 12,236 KSEK (5,494 KSEK in Q2 2023), +123% year-over-year.

• Q2 2024 operating result: 84 KSEK (-9,578 KSEK in Q2 2023); H1 2024 operating result: -1,979 KSEK (-22,649 KSEK in H1 2023).

• Q2 2024 result before tax: -592 KSEK (-8,128 KSEK in Q2 2023); H1 2024: -1,352 KSEK (-20,899 KSEK in H1 2023).

• Earnings per share Q2 2024: -0.05 SEK (-0.64 SEK in Q2 2023); H1 2024: -0.11 SEK (-1.66 SEK in H1 2023).

• Gross margin increased to 85% in Q2 2024 from 83% in Q1 2024.

Outlook and guidance

• Efficiency initiatives are expected to continue reducing costs and improving profitability in coming periods.

• The company is focused on increasing recurring revenue through deeper penetration of existing customers and new customer acquisition.

• Board continuously reviews cash flow forecasts and is prepared to secure additional financing if needed.