Net Insight (NETI) Q2 2024 earnings summary

Executive summary

• Net sales reached SEK 176.1 million in Q2 2024, up 39.5% year-over-year, marking the 15th consecutive quarter of growth and the highest turnover in company history.

• Operating earnings rose to SEK 38.3 million, with an operating margin of 21.8%, driven by a major SEK 30 million software order from a US customer.

• Excluding the large software order, organic Q2 growth was 15.5%, still above long-term targets.

• The order book stood at approximately SEK 190 million at quarter-end, with continued expansion in global markets and strong demand for media and time synchronization products.

• Net income for Q2 was SEK 30.4 million, with a net margin of 17.3% and diluted EPS of SEK 0.09.

Financial highlights

• Q2 2024 net sales: SEK 176.1 million (+39.5% YoY); H1 2024: SEK 318.6 million (+26.0% YoY).

• Q2 operating earnings: SEK 38.3 million (21.8% margin); H1: SEK 48.9 million (15.4% margin); adjusted H1 margin: 16.3%.

• Q2 EBITDA: SEK 58.8 million (33.4% margin); H1: SEK 85.3 million (26.8% margin).

• Q2 net income: SEK 30.4 million (17.3% margin); H1: SEK 44.6 million (14.0% margin).

• Cash and cash equivalents at period end: SEK 235.6 million; Q2 cash flow: SEK -16.1 million, mainly due to working capital and R&D investments.

Outlook and guidance

• Financial targets for 2023–2027 remain: average annual organic growth above 15% and operating margin to reach 20% during the period.

• Strong market position in both media and time synchronization, with continued investment in growth pockets and new regions.

• Expectation of further growth as POCs convert to commercial contracts, especially in time synchronization.

• Order pipeline remains strong at approximately SEK 190 million.

• Full 5G license issuance expected around year end, with some risk of delivery delays into 2027.