TH1NG (TH1NG) Q2 2024 earnings summary

Executive summary

• Q2 2024 marked a strategic shift to focus on core IoT business, following the divestment of broadband operations to Bahnhof, enabling increased market share and growth in IoT segments.

• IoT segment revenue grew 75% year-over-year in Q2, driving overall revenue growth and improved profitability.

• Organizational changes and cost reductions were implemented to support the new strategic direction.

Financial highlights

• Q2 2024 net revenue was 5.5 MSEK, up 4.4% year-over-year; H1 2024 net revenue reached 12.5 MSEK, up 28.1%.

• Q2 EBITDA was 7.0 MSEK (vs. -3.6 MSEK Q2 2023); H1 EBITDA was 3.8 MSEK (vs. -7.3 MSEK H1 2023).

• Q2 EBIT was 5.2 MSEK (vs. -5.0 MSEK Q2 2023); H1 EBIT was 0.1 MSEK (vs. -10.2 MSEK H1 2023).

• Q2 net profit was 4.9 MSEK (vs. -5.0 MSEK Q2 2023); H1 net loss was -0.2 MSEK (vs. -9.9 MSEK H1 2023).

• Q2 gross margin improved to 58.8% (from 41.1% Q2 2023); H1 gross margin was 55.3% (from 40.0% H1 2023).

Outlook and guidance

• Focus remains on IoT and smart energy solutions, with the goal of achieving positive cash flow in 2025.

• Management expects continued growth in IoT demand and is well positioned to capture market opportunities.