Presight AI (PRESIGHT) Q2 2024 earnings summary

Executive summary

• Achieved strong and profitable growth in H1 2024, driven by multi-year contracts, favorable deployment mix, and the acquisition of a controlling stake in AIQ, a leading AI energy company.

• Revenue for the six months ended 30 June 2024 reached AED 603.5 million, up from AED 513.9 million year-over-year.

• Net profit after tax for the period was AED 176.4 million, compared to AED 139.4 million in the prior year.

• Expanded international presence with new contracts and MoUs in Gambia, Mauritius, and Jordan, and partnerships with global technology leaders such as Microsoft, Intel, and Dell.

• Launched new enterprise-level AI solutions and platforms, including Presight Connect and Vitruvian, to support large-scale deployment of generative AI technology.

Financial highlights

• H1 2024 revenue grew 17.4% year-over-year, more than doubling the prior year's growth rate.

• EBITDA increased 25.8% year-over-year, with organic growth across both quarters exceeding prior year comparables.

• Gross profit for the six months was AED 264.9 million, up from AED 181.8 million year-over-year.

• Maintained a debt-free balance sheet with AED 1.28bn in cash and AED 179m operating cash flow in Q2 2024.

• Order book increased by AED 131.8m, with a backlog of AED 1.14bn as of June 2024 and a new AED 312m international contract signed in July 2024.

Outlook and guidance

• Medium-term guidance targets a 17–23% revenue CAGR and 15–20% EBITDA CAGR for 2023–2027, driven by expansion into new sectors and geographies.

• Over 90% of forecast revenue growth is anticipated from multi-year contracts, with public sector remaining the largest contributor.

• Geographical mix and solutions profile will influence margin stabilization, with a 10–15% net profit CAGR expected over four years, assuming a 9% UAE corporate tax rate from 2024.

• The group expects the new UAE corporate tax regime (9% rate) to apply for the full year 2024.

• Management notes that results for the six months are not necessarily indicative of full-year performance.