Teneo AI (TENEO) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 with 294% year-over-year SaaS API call revenue growth, 1 billion annualized API calls, and first cash flow positive month.

• Surpassed SEK 104 million ($10 million) ARR and 17,000 AI agents in production, with expanded US and European partnerships, including Genesys.

• Rebranded to Teneo AI, aligning product and company name for stronger market presence.

• Raised 60 MSEK in an oversubscribed directed share issue in early 2025 to fund US and UK growth.

• Launched Agentless Contact Center and LLM orchestration solutions, and completed ISO 27001 certification cycle.

Financial highlights

• SaaS API call revenues: 14.8 MSEK in Q4 2024 (+294% YoY); SaaS API call volumes: 60.3 million (+234% YoY).

• SaaS ARR: 75.1 MSEK (+142% YoY); total ARR: 103.9 MSEK (+65% YoY); recurring revenues: 26.3 MSEK (+67% YoY).

• Gross margin (excluding commission) reached 87% in Q4 2024, up from 75% in Q4 2023.

• Adjusted EBITDA improved to -1.7 MSEK from -5.8 MSEK in Q4 2023.

• Cash position at year-end: 18.4 MSEK, rising to 85.7 MSEK after receivables and share issue.

Outlook and guidance

• Focus for 2025 is on expanding with Genesys partnerships, large US accounts, and Nuance IVR replacement market.

• Intends to increase OPEX by approximately 10% in H1 2025 to invest in new sales and marketing.

• ARR growth is the primary target for 2025, with a goal to reach over 200 MSEK ARR during the year.

• Expects continued strong growth in API call volumes and ARR, driven by both existing and new large customers.

• Long-term EBITA margin target of over 30% in mature state.