Induct (INDCT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues fell to NOK 5.2 million from NOK 6.3 million in Q3 2023, mainly due to loss of subscription customers in Bidra, Induct, and Spain.

• EBITDA dropped to NOK 0.7 million from NOK 2.4 million in Q3 2023, impacted by temporary cost increases and revenue loss at Bidra AS.

• Bidra AS, lacking profitable products, will be dissolved.

• Strategic focus is on cost reduction, core product development, and expansion into Sweden and the UK healthcare sector.

Financial highlights

• Platform revenue in Q3 2024 was NOK 4.0 million, down 24.5% year-over-year.

• Consulting revenue increased to NOK 0.2 million, up NOK 0.14 million from Q3 2023.

• Gross margin on platform revenues improved slightly to 94.8% from 94.5% in Q3 2023.

• Net profit before tax was minus NOK 3.4 million, compared to minus NOK 1.5 million in Q3 2023.

• Booked equity at end of Q3 2024 was NOK 30.8 million, up from NOK 22.7 million in Q3 2023.

Outlook and guidance

• Effects of cost reduction and portfolio focus expected to materialize in H2 2025, including a targeted 40% reduction in technical costs.

• Expansion of Tilskuddsportalen into Sweden underway, with first contracts expected in Q4 2024.

• Anticipated partnership with Portsmouth University Hospitals NHS Trust and a pharmaceutical company expected to be finalized in Q4.