Realfiction (REALFI) Q2 2024 earnings summary

Executive summary

• Q2-2024 revenue rose 53% year-over-year to TSEK 2,508, driven by a 51% increase in Mixed Reality display sales and heightened partner activity.

• The company is focused on commercializing its Directional Pixel Technology (DPT), with licensing negotiations in final stages and a first commercial agreement expected by end of September 2024.

• DPT enables glasses-free 2D, 3D, and holographic displays, compatible with LCD, OLED, and microLED, and is positioned for multiple industry applications.

• Despite increased revenue, the result after financial items worsened to TSEK -8,508 in Q2-2024 due to higher costs related to go-to-market activities and R&D.

Financial highlights

• Q2-2024 revenue: TSEK 2,508 (Q2-2023: TSEK 1,643); H1-2024 revenue: TSEK 4,211 (H1-2023: TSEK 4,592).

• Gross profit Q2-2024: TSEK 1,511 (Q2-2023: TSEK 1,053); gross margin declined to 60.2% from 64.1% year-over-year.

• Result after financial items Q2-2024: TSEK -8,508 (Q2-2023: TSEK -2,935); EPS Q2-2024: SEK -0.43 (Q2-2023: SEK -0.15).

• Cash flow from operating activities Q2-2024: TSEK -6,122 (Q2-2023: TSEK -1,964); cash and bank at period end: TSEK 18,775.

• Equity at 30 June 2024: TSEK 52,309 (Q2-2023: TSEK 72,844); solvency ratio: 56.2% (Q2-2023: 77.5%).

Outlook and guidance

• Management expects to announce the first DPT commercial agreement by end of September 2024, with potential for upfront payments, royalties, and milestone fees.

• Financial runway extends into 2025, supported by recent financing and reduced cash outflows from a shift to commercialization.

• Market readiness for multiview 2D/3D displays is increasing, with strong order backlog for Mixed Reality displays.