Neovici (NEO) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in flagship product Cosmoz and completed the acquisition of Wraptech, expanding the customer base and product portfolio.

• Listed on Nasdaq First North during Q3 2024, marking a new phase of development.

• Focused on AI-driven solutions for retail, launching the Retail Brain platform and expanding internationally.

Financial highlights

• Q4 2024 net revenue increased by 3.6% to 13.8 MSEK; full-year revenue up 5.9% to 65.3 MSEK compared to 2023.

• Annual Recurring Revenue (ARR) rose 24.2% year-over-year to 68.7 MSEK.

• Q4 gross margin at 75.3% (down from 77.6%); full-year gross margin improved to 70.0% (from 64.8%).

• Q4 EBITDA at -5.0 MSEK (improved from -10.7 MSEK); full-year EBITDA at -20.0 MSEK (improved from -29.4 MSEK).

• Net result after tax for Q4 at -6.7 MSEK (vs. -12.8 MSEK); full-year at -29.3 MSEK (vs. -35.1 MSEK).

• Q4 operating cash flow positive at 16.3 MSEK (vs. -3.3 MSEK); full-year operating cash flow at -6.5 MSEK (vs. -13.6 MSEK).

Outlook and guidance

• Targeting EBITDA-level profitability in 2025, with Wraptech integration possibly shifting timing to H2.

• Continued focus on expanding AI-driven retail solutions and international growth, especially in Europe and Latin America.