Sonetel (SONE) H2 2024 earnings summary

Executive summary

• Revenue for July 2023–June 2024 was unchanged at 23.4 MSEK; EBITDA reached 7.3 MSEK, but operating income fell to 0.2 MSEK from 1.1 MSEK year-over-year.

• Net loss before tax widened to -1.8 MSEK from -0.4 MSEK; adjusted for currency effects, pre-tax loss was -2.1 MSEK versus +0.3 MSEK prior year.

• ARR in SEK declined 2% to 20.5 MSEK, but remained flat in USD at 1.95 MUSD; customer base and paid subscriptions grew.

• New strategy focuses on AI-powered virtual phone numbers, aiming for accelerated growth and improved conversion rates.

• Post-period, a successful share issue raised 12 MSEK, reducing debt and strengthening financial stability.

Financial highlights

• Net sales for H2 Jan–Jun 2024 decreased to 11.8 MSEK from 12.0 MSEK; operating loss was -1.1 MSEK versus +0.3 MSEK.

• Full-year EBITDA was 7.3 MSEK, down from 7.7 MSEK; cash flow from operations was 5.5 MSEK, down from 6.1 MSEK.

• Earnings per share for the year were -0.47 SEK, compared to -0.17 SEK last year.

• Gross margin improved to 79%, up 2 percentage points year-over-year.

• Soliditet (equity ratio) at period end was 51%, down from 54% a year earlier.

Outlook and guidance

• AI-driven product enhancements and a new focus on virtual phone numbers expected to drive growth in H2 2024.

• ARR in USD up 3% year-over-year by end of August 2024; July–August 2024 revenues up 10% in USD versus prior year.

• Preliminary July 2024 result at breakeven (0.0 MSEK); continued positive EBITDA anticipated.