Modulight (MODU) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 58% year-over-year to EUR 640 thousand, though it declined 34% sequentially; nine-month revenue was EUR 2,664 thousand, down 11% year-over-year.

• EBITDA loss narrowed by 50% in Q3 to EUR -1,278 thousand, reflecting improved operational efficiency and reduced one-time costs.

• The pay-per-treatment (PPT) business model expanded to new customers and continents, with accelerated device deployments in Australia and the U.S.

• R&D pipeline stable at 30 projects, with focus on phase III trials, commercialization, and successful prototype deliveries, including to a major quantum computing company.

• Cash flow from operations and net cash flow improved significantly year-over-year, supported by the completion of a major investment program and a strong cash position of EUR 18.5 million at period end.

Financial highlights

• Q3 2024 revenue: EUR 640 thousand (+58% YoY, -34% QoQ); nine-month revenue: EUR 2,664 thousand (-11% YoY).

• Q3 EBITDA: EUR -1,278 thousand (improved from -2,537 thousand); nine-month EBITDA: EUR -3,813 thousand (improved from -5,547 thousand).

• Q3 EBIT: EUR -2,108 thousand (improved from -3,074 thousand); nine-month EBIT: EUR -6,134 thousand (improved from -7,072 thousand).

• EPS for Jan–Sep 2024: EUR -0.13 (improved from -0.16); Q3 EPS: EUR -0.05 (improved from -0.07).

• Cash and cash equivalents at period end: EUR 18,531 thousand; net debt: EUR -13,523 thousand.

Outlook and guidance

• Revenue forecasting remains challenging due to early-stage customer projects and macroeconomic/geopolitical uncertainties; no guidance provided for 2024.

• Strategic focus on transitioning to the PPT business model, commercial rollouts, and geographic expansion, with most revenue expected to accumulate in 2025.

• Continued investment in R&D and expansion, with new customers signed in Asia and ongoing focus on the U.S. market.