Lime Technologies (LIME) Q2 2024 earnings summary

Executive summary

• Achieved 21% year-over-year revenue growth and 24% adjusted EBITA/EBITDA margin in Q2 2024, with ARR up 28% and over 1 million users and 7,500 customers across 7 countries.

• Recurring revenue now represents 63% of total, reflecting a successful shift to SaaS and subscription models.

• Maintains a long-term focus, averaging 19% annual growth and 25% EBITDA margin over 20+ years.

• Low customer concentration, with top 10 customers accounting for 7.2% of revenue and no single customer concentration risk.

• Strong order intake, product launches, and continued investment in personnel and product development support ongoing growth.

Financial highlights

• Q2 2024 net sales reached MSEK 174.5 (up 21% year-over-year), with recurring revenue up 30% to MSEK 110.6.

• Subscription revenue grew 32% year-over-year, now representing 59% of total revenue; software revenues accounted for 63% of Q2 net sales.

• Q2 adjusted EBITA margin was 24%; rolling LTM margin at 25.5%.

• Q2 EBITDA margin was 29%; H1 EBITDA margin was 30%.

• Sweden segment grew 22%, rest of Europe 17% in Q2; rest of Europe grew 20% over last 12 months.

Outlook and guidance

• Medium-term targets: annual net sales growth above 18% and EBITA margin above 25%.

• Continues to prioritize growth over profitability, investing in sales, marketing, and product development.

• Market conditions remain challenging with longer sales cycles and increased competition.