Sileon (SILEON) Q3 2024 earnings summary

Executive summary

• Sileon is transitioning to a pure SaaS company, having signed an agreement to divest its Payments business after the quarter's end.

• Organizational changes led to one-time costs of approximately 6 MSEK, mainly related to management restructuring.

• A rights issue was completed to strengthen equity, but liquidity remains strained, prompting a review of strategic alternatives.

• The company is focusing on expanding its BNPL SaaS platform, targeting a broader financial ecosystem.

Financial highlights

• Q3 2024 revenue was 6.8 MSEK, down from 9.7 MSEK in Q3 2023; LTM revenue was 44.4 MSEK.

• EBITDA for Q3 2024 was -13.2 MSEK (Q3 2023: -8.6 MSEK); EBIT was -18.8 MSEK (Q3 2023: -14.1 MSEK).

• Net result for Q3 2024 was -18.9 MSEK (Q3 2023: -14.5 MSEK); EPS was -0.17 SEK.

• Cash flow from operations before changes in working capital was -13.6 MSEK; total cash flow for the quarter was 13.4 MSEK.

• Liquid assets at quarter-end were 20.9 MSEK, up from 7.3 MSEK a year earlier.

Outlook and guidance

• Sileon's BNPL SaaS business is not yet generating sufficient cash flow to cover total operations.

• Available liquidity as of September 30 does not cover the needs for the next 12 months; further financing is required.

• The board is optimistic about developing the new SaaS business and achieving set goals, contingent on securing financing.