Litium (LITI) Q2 2024 earnings summary

Executive summary

• Achieved continued profitability improvement in Q2 2024, with EBIT turning positive at 0.1 MSEK compared to -0.6 MSEK in Q2 2023, and a strong first half-year EBIT improvement of 3.5 MSEK year-over-year.

• Annual Recurring Revenue (ARR) grew 6.6% year-over-year to 71.3 MSEK as of June 30, 2024, with 100% of revenue from recurring contracts.

• The company remains self-financed and is on track to achieve its full-year target of positive results.

Financial highlights

• Q2 2024 net sales increased 0.8% year-over-year to 18.5 MSEK, with a gross margin of 68.9% (down from 71.7%).

• EBITDA for Q2 2024 was 4.3 MSEK (up from 3.1 MSEK), and for H1 2024 was 8.2 MSEK (up from 3.7 MSEK).

• EBIT for Q2 2024 was 0.1 MSEK (vs. -0.6 MSEK), and for H1 2024 was -0.2 MSEK (vs. -3.7 MSEK).

• Investments decreased 16.1% in Q2 to 4.9 MSEK, and 13.2% in H1 to 10.3 MSEK.

• Cash at period end was 7.8 MSEK (down from 13.3 MSEK year-over-year).

Outlook and guidance

• Management expects a stronger second half as deferred customer decisions are anticipated to convert, supported by a robust sales pipeline.

• The company maintains its goal of a positive full-year result, leveraging a scalable, self-financed business model.