Nattaro Labs (NATTA) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 decreased by 7% year-over-year to 1,028 TSEK, with international sales increasing but Swedish sales declining due to a construction downturn.

• Net loss after tax improved to -1,248 TSEK from -1,311 TSEK year-over-year, with EBITDA improving due to lower operating costs and a higher gross margin.

• A major five-year supply agreement was signed with Spotta Ltd for connected bed bug monitoring, expected to generate at least 10 MSEK.

• A directed share issue post-period raised 5.1 MSEK to fund digital marketing, online sales, and development of connected monitoring solutions.

Financial highlights

• Group revenue: 1,028 TSEK (down 7% year-over-year); parent company revenue: 1,009 TSEK (down 21%).

• Group net income: -1,248 TSEK (improved from -1,311 TSEK); EPS: -0.06 SEK (vs. -0.19 SEK).

• Gross margin increased to 77% (from 71%); group equity ratio at 66% (up from 63%).

• Cash flow from operations improved by 2.16 MSEK year-to-date but remains negative.

• Cash and cash equivalents at period end: 810 TSEK (down from 1,079 TSEK year-over-year).

Outlook and guidance

• Focus on expanding online sales and leveraging the new connected monitoring business area for future growth.

• The Spotta agreement provides recurring revenue and positions the company for further international expansion.

• Ongoing digital marketing investments and strengthened international presence expected to drive growth.