Touchtech (TOUCH) Q2 2024 earnings summary

Executive summary

• Focused on efficiency, cost control, and profitability in H1 2024, doubling EBITDA and tripling pre-tax profit year-over-year while maintaining product development speed.

• Shifted strategic focus to long-term growth, expanding product portfolio and packaging to reach a broader market beyond early adopters.

• Launched AI-driven initiatives, including Virtual Try-On and a strategic partnership with Google Cloud for AI assistant development.

Financial highlights

• Q2 2024 net revenue was 5,942 TSEK, down from 6,348 TSEK in Q2 2023; H1 2024 net revenue was 11,751 TSEK, up 1.4% year-over-year.

• Q2 EBITDA reached 4,473 TSEK (vs. 3,384 TSEK); H1 EBITDA was 8,876 TSEK (vs. 4,681 TSEK), reflecting improved profitability.

• Q2 pre-tax profit was 2,128 TSEK (vs. 1,641 TSEK); H1 pre-tax profit was 4,419 TSEK (vs. 1,374 TSEK).

• EPS for Q2 was 0.19 SEK (vs. 0.15 SEK); H1 EPS was 0.40 SEK (vs. 0.12 SEK).

• Operating cash flow for H1 was 6,138 TSEK (vs. 1,809 TSEK), supporting a strong liquidity position.

Outlook and guidance

• Continued focus on profitable growth, with plans to further develop product offerings and expand market reach in the fashion sector.

• AI-Kit for Fashion and new AI assistant initiatives expected to drive long-term growth.