Spotr Group (SPOTR) Q3 2024 earnings summary

Executive summary

• Annual Recurring Revenue (ARR) decreased 17% year-over-year to 4,670 TSEK as of September 30, 2024.

• Net sales fell 34% year-over-year to 1,043 TSEK for the quarter.

• EBITDA improved to -2,795 TSEK from -7,224 TSEK year-over-year.

• Net result was -2,980 TSEK, impacted by one-time costs of 0.8 MSEK related to a rights issue and the Adligo acquisition.

• Major restructuring and cost-saving initiatives are underway, including a shift to a performance-based sales organization.

Financial highlights

• ARR at quarter-end: 4,670 TSEK (down from 5,625 TSEK year-over-year).

• Repetitive contract revenue: 969 TSEK, representing 92.9% of net sales.

• EBITDA: -2,795 TSEK (improved from -7,224 TSEK year-over-year).

• Net result: -2,980 TSEK (improved from -8,647 TSEK year-over-year).

• Earnings per share: -0.19 SEK (improved from -1.16 SEK year-over-year).

Outlook and guidance

• Management expects further cost savings from organizational restructuring, with full effect by mid-November.

• Synergies from the Adligo acquisition are anticipated to support a path to positive cash flow in the near future.

• Focus remains on profitability and leveraging the platform for new verticals and markets.