Sileon (SILEON) Q2 2024 earnings summary

Executive summary

• Sileon is transitioning to a BNPL SaaS model, expanding features for responsible lending and pre-approved BNPL options, and signed new agreements with Bankaool (Mexico) and OKQ8 Bank (Nordics).

• CEO David Larsson resigned; Kent Hansson appointed acting CEO. A rights issue of SEK 57 million was completed, with SEK 20 million used to repay a convertible loan.

• Revenues temporarily increased in Q2 due to winding down the Processing business; future revenues expected to be lower until BNPL SaaS ramps up.

Financial highlights

• Q2 2024 operating income was SEK 16.4M, up from SEK 13.6M in Q2 2023; H1 2024 operating income was SEK 28.1M.

• EBITDA improved to SEK -1.5M in Q2 2024 from SEK -8.3M in Q2 2023; H1 2024 EBITDA was SEK -5.4M.

• EBIT for Q2 2024 was SEK -6.7M, compared to SEK -13.5M in Q2 2023; H1 2024 EBIT was SEK -16.1M.

• Net loss for Q2 2024 was SEK -5.2M, improved from SEK -14.2M in Q2 2023; H1 2024 net loss was SEK -15.6M.

• Cash and cash equivalents at June 30, 2024, were SEK 7.5M, down from SEK 18.8M a year earlier.

Outlook and guidance

• BNPL SaaS revenues expected to start in the fall, initially at a small scale; overall revenues will be lower in coming quarters as Processing business winds down.

• Cost reductions are ongoing and will continue into Q3 to align with gradually increasing revenues.

• The Board sees positive prospects for business development but notes that available cash does not cover the next 12 months' needs; further financing may be required.