Irisity (IRIS) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked the full implementation of five strategic initiatives aimed at profitability and positive cash flow, with notable customer wins in airport and safe city projects in Latin America and Central America.

• Net sales for Q3 reached MSEK 30.3, the highest in 2024, despite negative impacts from currency fluctuations and project delays.

• The company is preparing a rights issue of approximately MSEK 70.6, 80% guaranteed, to support profitability, debt repayment, and working capital.

Financial highlights

• Q3 2024 net sales: MSEK 30.3 (32.3 in Q3 2023); nine-month net sales: MSEK 83.7 (90.0).

• Gross margin improved to 85.2% (82.4%); EBITDA at MSEK -14.3 (1.4); result after tax MSEK -45.5 (-32.1).

• Invoicing increased 11% YoY to MSEK 35.4; collections up 53% YoY to MSEK 26.2.

• Cash and available credit lines at quarter-end: MSEK 6.8 (4.8); net debt MSEK 29.8 (32.3).

• Cash flow from operating activities in Q3: MSEK -17.5 (-10.9); cash flow for the period: MSEK -4.1 (-5.9).

Outlook and guidance

• MRR was flat quarter-on-quarter at MSEK 4.3, with expectations for growth in 2025 following recent investments.

• The company plans to use rights issue proceeds for debt repayment, geographic sales growth, and working capital improvements.

• Generative AI adoption is expected to lower R&D and customer acquisition costs, supporting future profitability.