Irisity (IRIS) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were MSEK 25.8, down 14.4% year-over-year, with a shift toward SaaS and support agreements over perpetual licenses.

• EBITDA for Q2 was MSEK -11.4, impacted by lower sales, higher COGS, and increased personnel costs due to severance and the Ultinous acquisition.

• Result after tax for Q2 was MSEK -40.7, compared to MSEK -28.6 in Q2 2023.

• The acquisition of Ultinous Zrt closed, expanding generative AI capabilities and contributing to a 110% YoY increase in customer invoicing.

• New board members and chairman appointed, with a focus on cash flow positivity and sustainable growth.

Financial highlights

• Q2 net sales: MSEK 25.8 (Q2 2023: 30.2); H1 net sales: MSEK 53.4 (H1 2023: 57.7).

• Q2 EBITDA: MSEK -11.4 (Q2 2023: 0.3); H1 EBITDA: MSEK -14.7 (H1 2023: -5.1).

• Q2 gross margin: 75.2% (Q2 2023: 83.9%); H1 gross margin: 79.0% (H1 2023: 83.9%).

• Result after tax Q2: MSEK -40.7 (Q2 2023: -28.6); H1: MSEK -71.7 (H1 2023: -65.1).

• Cash and available credit lines at period end: MSEK 26.5 (Q2 2023: 10.9).

• Invoicing Q2: MSEK 39.3 (Q2 2023: 18.7).

Outlook and guidance

• Focus remains on achieving positive cash flow and streamlining operations, with expected 5–10% reduction in personnel and operating costs in coming quarters.

• Q3 will see the commercial launch of generative AI software, with a sales campaign and preorders starting in August.

• Board supports continued R&D focus on key customer segments and balanced investment in future technologies.