Induct (INDCT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were NOK 5.1 million, down from NOK 6.2 million in Q2 2023, mainly due to loss of private sector innovation management contracts in Norway.

• EBITDA rose 117.6% year-over-year to NOK 3.7 million, reflecting improved operational efficiency and cost reductions.

• Gross margin on platform revenues increased to 95.1% from 94% in Q2 2023, supporting a strong core business.

• Investments continue in new healthcare modules and international partnerships, including a significant agreement of intent with Portsmouth University Hospitals NHS Trust and a global pharmaceutical company.

• Internal efficiency project completed, reducing costs and improving productivity, especially in Tilskuddsportalen, where production costs dropped over 60% in the past year.

Financial highlights

• Total revenues for Q2 2024: NOK 5.1 million (down 18% year-over-year).

• Platform revenues: NOK 4.2 million (down 18.9% year-over-year); consulting revenues: NOK 0.3 million (up NOK 0.2 million year-over-year).

• EBITDA: NOK 3.7 million (up from NOK 1.7 million in Q2 2023).

• Net profit before tax: minus NOK 0.7 million (improved from minus NOK 2.1 million in Q2 2023).

• Booked equity at end of Q2 2024: NOK 37.5 million (up from NOK 31.6 million in Q2 2023).

Outlook and guidance

• Focus on growing revenues and increasing profitability, especially in healthcare and grant management solutions.

• Anticipates final approval for a major international healthcare partnership by early September.

• Plans to share selected SaaS KPIs going forward to align with industry standards.