Neovici (NEO) Q3 2024 earnings summary

Executive summary

• Revenue and recurring income reached record levels, with ARR up 40.7% year-over-year to 68.7 MSEK and Q3 revenue up 5.75% to 16.0 MSEK, driven by growth in existing customer accounts.

• The company launched Retail Brain, an AI platform for retail, and expanded teams in Stockholm and Mexico to support global ambitions.

• Neovici was listed on Nasdaq First North Growth Market in July 2024, supporting its international expansion strategy.

Financial highlights

• Q3 2024 net revenue: 16.0 (15.2) MSEK, up 5.75% year-over-year; ARR: 68.7 (48.8) MSEK, up 40.7%.

• Q3 gross profit: 11.1 (9.0) MSEK, gross margin 69.1% (59.5%).

• Q3 EBITDA: -4.9 (-4.5) MSEK, margin -30.8% (-29.5%).

• Q3 net result after tax: -8.1 (-6.2) MSEK; EPS after dilution: -0.19 (-0.15) SEK.

• 9M 2024 net revenue: 51.5 (48.3) MSEK, up 6.5%; gross profit: 37.4 (29.7) MSEK, margin 72.6% (61.4%).

• 9M EBITDA: -15.0 (-18.7) MSEK, margin -29.2% (-38.7%).

• 9M net result after tax: -22.6 (-22.3) MSEK; EPS after dilution: -0.54 (-0.55) SEK.

• Cash flow from operations: Q3 -1.9 (6.0) MSEK; 9M -22.8 (-10.3) MSEK.

Outlook and guidance

• Management maintains the goal of achieving positive cash flow in the first half of 2025, supported by new customer contracts and available credit facilities.

• Continued focus on expanding the customer base in Europe, Latin America, and Southeast Asia, leveraging the Cosmoz and Retail Brain platforms.