TH1NG (TH1NG) Q3 2024 earnings summary

Executive summary

• Strategic shift to focus on IoT core business, especially in real estate and smart cities, following divestment of broadband operations.

• IoT segment revenue grew 35% year-over-year in Q3, while total net sales declined 36% due to broadband divestment.

• Bruttomarginal improved significantly to 82% in Q3, reflecting higher share of IoT services.

• Leadership changes: Tomas Karlsson appointed interim CEO after Klas Westholm's departure.

• New framework agreements and customer wins, including Sinfra and Philip Morris Manufacturing & Technology Bologna.

Financial highlights

• Q3 net sales: SEK 3.4m, down 36% year-over-year; nine-month net sales: SEK 15.9m, up 6%.

• Q3 EBITDA: SEK -2.8m (vs. -2.2m); nine-month EBITDA: SEK 1.0m (vs. -9.5m).

• Q3 EBIT: SEK -4.7m (vs. -3.8m); nine-month EBIT: SEK -4.6m (vs. -14.0m).

• Q3 net result: SEK -5.0m (vs. -4.0m); nine-month net result: SEK -5.2m (vs. -14.0m).

• Cash at period end: SEK 5.7m; total cash flow for Q3: SEK 3.4m.

Outlook and guidance

• Continued focus on IoT growth, especially in real estate and smart city sectors.

• Ongoing cost reduction and organizational streamlining to improve recurring revenue and profitability.

• Long-term financing plan in development to support expansion and sustainable growth.