Kontigo Care (KONT) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 reached 7.5 MSEK, up 2.4% year-over-year; H1 2024 net sales totaled 15.1 MSEK, up 4.8% year-over-year.

• EBIT for Q2 was 0.5 MSEK (6.9% margin), compared to -0.4 MSEK (-5.1%) last year; H1 EBIT was 0.7 MSEK (4.7% margin), up from -0.8 MSEK (-5.7%).

• Net income for Q2 was 0.5 MSEK (0.02 SEK/share), compared to -0.5 MSEK (-0.02 SEK/share) last year.

• Launched Previct® Safety, a digital drug testing product for the private market, and signed a strategic partnership with Mehiläinen OY in Finland.

Financial highlights

• Monthly Recurring Revenue (MRR) at quarter-end was 2.53 MSEK, up 6.3% year-over-year and 0.3% sequentially.

• Gross margin for Q2 was 86.0%, up from 84.1% last year.

• Free cash flow for Q2 was -1.8 MSEK, an improvement from -2.3 MSEK last year, mainly due to lower development investments.

• Cash position at quarter-end was 14.3 MSEK, with a negative net debt of -9.2 MSEK.

Outlook and guidance

• No formal financial guidance provided; first customer for Previct® Safety expected later in the year.

• Ongoing expansion into new market segments and international markets, with continued product development focus.