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 from SEK 9.9 million in Q2 2023, 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.

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

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

Financial highlights

• Net sales for H1 2024 reached SEK 318.6 million, up 26% year-over-year.

• Operating earnings for H1 2024 were SEK 48.9 million, up from SEK 21.9 million last year; adjusted operating earnings were SEK 52 million.

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

• Cash and cash equivalents at period end were SEK 235.6 million, down from SEK 266.3 million a year ago.

• Q2 cash flow was SEK -16.1 million, mainly due to working capital tied up in receivables and investments in R&D.

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.

• APAC and North America markets are progressing well, with ongoing pilots and customer conversions.

• Anticipates continued growth in recurring software revenue and expansion in private networks and power grid segments.