Greater Than (GREAT) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 12% year-over-year to 9.3 MSEK, with operating result turning positive at 5.8 MSEK, driven by cost reductions and non-recurring revenue such as tax refunds.

• Legal action initiated against former largest customer ABAX for breach of contract (NOK 182 million) and IP infringement, resulting in significant provisions and expected revenue loss until new customers are acquired.

• Raised 45 MSEK in growth capital through a direct share issue and convertible notes, strengthening the balance sheet and supporting ongoing business development.

• Q3 cash flow was negatively impacted by legal costs and loss of revenue from the former customer.

• Expectation of significantly lower revenue in coming quarters until the customer gap is filled.

Financial highlights

• Q3 2024 net sales: 9,282 KSEK (Q3 2023: 8,255 KSEK), up 12% year-over-year.

• Q3 2024 operating result: 5,772 KSEK (Q3 2023: -4,654 KSEK); net result before tax: 6,422 KSEK (Q3 2023: -5,701 KSEK).

• January–September 2024 net sales: 32,436 KSEK (2023: 18,680 KSEK), up 74% year-over-year.

• January–September 2024 operating result: 3,791 KSEK (2023: -27,303 KSEK); net result before tax: 5,069 KSEK (2023: -26,600 KSEK).

• Earnings per share for Q3: 0.51 SEK (Q3 2023: -0.45 SEK); for January–September: 0.40 SEK (2023: -2.11 SEK).

Outlook and guidance

• Revenue expected to be significantly lower in the next quarters due to the loss of the largest customer, with recovery dependent on acquiring new customers.

• Strong market tailwinds from AI adoption and ESG reporting requirements are expected to drive future growth.