TH1NG (TH1NG) Q4 2024 earnings summary

Executive summary

• Strategic shift to focus solely on IoT, divesting or closing other business areas to increase recurring revenue and improve margins.

• Organizational changes and leadership turnover impacted sales at the start of 2025, but the company aims to complete restructuring in H1 2025.

• Financial position remains strained, with ongoing efforts to secure both short- and long-term financing.

Financial highlights

• Q4 2024 net sales were 3.7 MSEK, up 10% sequentially but down 50% year-over-year due to broadband business divestment.

• Q4 gross margin improved to 56.2% from 32.7% year-over-year, driven by focus on IoT services.

• Q4 EBITDA was -3.9 MSEK, and EBIT was -6.5 MSEK, both deteriorating year-over-year.

• Full-year 2024 net sales were 19.7 MSEK, down 12.7% year-over-year; IoT sales grew 35% to 13.1 MSEK.

• Full-year EBITDA was -12.0 MSEK (including a 10 MSEK one-time gain from broadband divestment), and EBIT was -11.0 MSEK.

Outlook and guidance

• The company will complete its business streamlining in H1 2025 and focus on sales to the property sector.

• New sales plan targets scalable, packaged IoT solutions for real estate, aiming for improved revenue and profitability.

• Financing efforts are ongoing to support future development.