Litium (LITI) Q3 2024 earnings summary

Executive summary

• Achieved profitability at EBIT level and positive cash flow in Q3 2024, with continued improvement in financial results and a solid platform for future growth.

• Annual Recurring Revenue (ARR) grew 5.1% year-over-year to 71.4 MSEK, with 100% of revenue from recurring contracts.

• Business climate is improving, with a strong deal pipeline and increased deal closures compared to last year.

Financial highlights

• Q3 2024 net sales increased 0.8% to 16.7 MSEK (16.5 MSEK), gross margin at 66.1% (68.2%).

• EBITDA rose to 4.3 MSEK (3.2 MSEK), EBIT at 0.1 MSEK (-0.5 MSEK), and net income per share at 0.01 SEK (-0.03 SEK).

• 9M 2024 net sales up 5.0% to 52.9 MSEK (50.3 MSEK), gross margin 68.0% (68.7%), EBITDA 12.5 MSEK (6.9 MSEK).

• Investments decreased 7.7% in Q3 and 11.6% for 9M; cash at period end was 9.1 MSEK (10.2 MSEK).

• Solid equity ratio at 83.2% (83.3%).

Outlook and guidance

• Management expects a positive end to the year and increased growth, supported by a strong pipeline and improving market conditions.

• Focus remains on strengthening B2B leadership and accelerating growth through new packaging and strategic partnerships.

• Financial target is to report positive EBIT for full year 2024.