Nexcom (NEXCOM) Q2 2024 earnings summary

Executive summary

• Revenue increased to TDKK 3,831 in H1 2024 from TDKK 3,688 in H1 2023, driven by new contracts expected to impact H2 2024.

• Cost reductions led to improved EBITDA loss of TDKK -3,575 versus TDKK -4,021 year-over-year.

• No churn in annual contracts, reflecting strong customer loyalty.

• New major agreements signed, including a multi-national reseller deal and extended contracts with key clients.

• Board changes and establishment of an Advisory Board to support commercial strategy.

Financial highlights

• Revenue up 4% year-over-year to TDKK 3,831.

• EBITDA loss improved to TDKK -3,575 from TDKK -4,021 year-over-year.

• EBIT loss narrowed to TDKK -5,475 from TDKK -5,932 year-over-year.

• Net loss after tax at TDKK -5,169, improved from TDKK -7,035 in H1 2023.

• Earnings per share at DKK -0.27.

Outlook and guidance

• Revenue from new contracts expected to have full impact in H2 2024, supporting long-term growth.

• Management believes cost structure is now scalable and supports future expansion.

• AI market growth and maturing customer demands seen as opportunities for further expansion.