Teneo AI (TENEO) Q3 2024 earnings summary

Executive summary

• Achieved record 90% year-over-year SaaS API call revenue growth, with ARR reaching 84.3 MSEK and strong customer acquisition, including new OEM agreements and contract renewals.

• Completed rebranding to Teneo.ai, launched LLM orchestration solution, and achieved full ISO 27001 certification.

• Platform reached 700 million annualized API calls, with SaaS API call volumes up 81% year-over-year.

• Expanded partnerships, especially in the U.S. and U.K., and launched new features for rapid multi-language deployment.

• Net Revenue Retention at 127% in Q3 2024, reflecting robust expansion within the existing customer base.

Financial highlights

• SaaS API call revenues reached 9.3 MSEK, up 90% year-over-year; SaaS ARR at 54.3 MSEK, up 58%; total ARR at 84.3 MSEK, up 29–30%.

• Recurring revenues totaled 21.1 MSEK (+30% YoY), nearly 100% of net sales; gross margin improved to 79% from 63% a year ago.

• Adjusted EBITDA loss narrowed to -5.9 MSEK, a 54% improvement year-over-year.

• Cash and bank position at quarter-end was 31.5 MSEK, adjusted to 37 MSEK after post-quarter collections.

• Earnings per share improved to -0.1 SEK (from -0.3 SEK); equity ratio remains negative at 0.0.

Outlook and guidance

• Confident in achieving 1 billion API call target and 200 MSEK ARR goal for 2025.

• OPEX run rate increased to 116 MSEK in Q3 2024 due to planned investments; further OPEX increases expected for growth initiatives.

• Aiming for at least one month of cash flow positive operations in 2024, but more volume is needed for sustained positive cash flow.

• No further one-off costs expected after recent organizational adjustments; cost savings to be reinvested in growth.

• Will begin disclosing pipeline numbers in Q4 to enhance transparency.