Irisity (IRIS) Status Update summary

Company overview and market position

• Largest independent video analytics supplier with global reach, aiming for top position outside China in security and safety AI software sales.

• Operates three development centers in Tel Aviv, Budapest, and Gothenburg, with 84 employees and SEK 117 million in 2023 revenues.

• Provides generative AI video solutions for security and safety monitoring, serving over 250 monitoring centers worldwide.

• Focuses on hybrid, on-premise, and cloud solutions, with three main product segments: Enterprise, Professional, and Central Monitoring.

• Diverse customer base includes airports, city surveillance, education, government, healthcare, transportation, and critical infrastructure.

Business segments and revenue distribution

• Four main business segments: government enterprise security, Security as a Service, mid-market professional security, and remote guarding.

• Government enterprise security is the largest revenue contributor, with significant projects like Michoacán 911 Center in Mexico.

• Security as a Service, primarily in Sweden, accounts for about 20% of revenue, with long-term customers like Gothenburg.

• Remote guarding represents another 20% of revenue, with strong adoption in central monitoring operations.

• Revenue is well-diversified across segments and geographies, supporting growth and resilience.

Strategic initiatives and profitability focus

• Five key actions implemented to drive commercial scaling and profitability, including commercial focus, segment acceleration, streamlining, MRR growth, and generative AI adoption.

• Achieved 34% year-on-year growth after focusing on pipeline expansion and integrating acquisitions.

• Acquisition of Ultinous enabled rapid launch of Iris+ Pro, targeting mid-market growth.

• Streamlined organization to reduce personnel costs and improve customer centricity, expecting substantial savings in 2025.

• Recurring revenue (MRR) is a key focus, with an order book exceeding SEK 66 million and expectations to approach SEK 100 million in 2025.