Neovici (NEO) Q2 2024 earnings summary

Executive summary

• First interim report as a listed company, with focus on IPO and operational progress; ARR growth of 39% year-over-year driven by increased trust from existing customers.

• IPO on Nasdaq First North Growth Market completed July 2, 2024, without new capital raise; prior rights issue of 26 MSEK strengthened financial position.

• Expansion of development teams in Stockholm and Mexico, and establishment in Southeast Asia; new AI-driven features launched in Cosmoz platform.

Financial highlights

• Q2 2024 net revenue: 22.1 MSEK, down 1.7% year-over-year due to 2023 periodization; underlying growth 33.9% excluding periodization effects.

• H1 2024 net revenue: 35.4 MSEK, up 6.9% year-over-year; Cosmoz product revenue up 24.5% to 35.4 MSEK.

• Q2 2024 EBITDA: -1.6 MSEK (-7.2% margin); H1 2024 EBITDA: -10.1 MSEK (-28.5% margin), improved from -14.2 MSEK (-42.9%) year-over-year.

• Q2 2024 net result after tax: -4.7 MSEK; H1 2024: -14.5 MSEK, improved from -16.1 MSEK year-over-year.

• Q2 2024 cash flow from operations: -11.1 MSEK; H1 2024: -20.8 MSEK.

Outlook and guidance

• Targeting profitability in H1 2025; continued investment in growth and international expansion.

• Focus on expanding Cosmoz platform functionality and global customer base, especially in Latin America and Southeast Asia.