Nattaro Labs (NATTA) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 decreased by 5% to 4,428 TSEK, with a 3% drop in total income; Q4 revenue fell 30% year-over-year.

• Net loss for 2024 improved to -5,337 TSEK from -5,814 TSEK; Q4 net loss was -1,497 TSEK, a reduction from -2,169 TSEK in Q4 2023.

• International sales rose 20% annually, now representing 65% of total revenue, offsetting weaker Swedish market due to a construction downturn.

• Strategic focus shifted to B2C and online sales, supported by a 5.1 MSEK directed share issue and new marketing leadership.

• Major partnership agreements signed with Spotta Ltd (UK) and ChinCheX Ltd (Asia-Pacific), expected to drive recurring and international revenue.

Financial highlights

• Full-year revenue: 4,428 TSEK (down 5% year-over-year); Q4 revenue: 839 TSEK (down 30%).

• Net loss for 2024: -5,337 TSEK (improved from -5,814 TSEK); Q4 net loss: -1,497 TSEK (improved from -2,169 TSEK).

• Gross margin for 2024: 67% (68% prior year); Q4 gross margin: 36% (43% prior year).

• Earnings per share: -0.18 SEK (prior year -0.54) before dilution; -0.15 SEK after dilution.

• Cash flow from operations improved by 2,920 TSEK but remained negative at -4,067 TSEK for the year.

Outlook and guidance

• Management expects continued international growth, especially in B2C and online channels, leveraging new partnerships and digital marketing.

• Recurring revenue anticipated from subscription-based agreements, notably with Spotta Ltd.

• Expansion in Asia-Pacific through ChinCheX partnership and ongoing product innovation are key growth drivers.