Transiro (TIRO) Q2 2024 earnings summary

Executive summary

• EBITDA for H1 2024 increased to 2.0 MSEK from 1.2 MSEK year-over-year, reflecting improved operational efficiency despite challenging market conditions with high inflation and cautious investment climate.

• Net loss for H1 2024 reduced to -1.6 MSEK from -2.3 MSEK year-over-year, with the loss mainly due to a 1.45 MSEK loss from the divestment of Wifog and operational losses, as well as customer bankruptcies.

• Net sales for H1 2024 remained stable at 16.6 MSEK compared to the adjusted figure for H1 2023.

• Q2 2024 saw a 14% decline in net sales to 6.9 MSEK and a net loss of -2.7 MSEK, impacted by seasonality and the Wifog divestment.

Financial highlights

• EBITDA for H1 2024 was 2.0 MSEK, up from 1.2 MSEK year-over-year; Q2 EBITDA was -0.4 MSEK versus 0.007 MSEK in Q2 2023.

• Net sales for H1 2024 were 16.6 MSEK, unchanged from the adjusted H1 2023; Q2 net sales fell to 6.9 MSEK from 8.1 MSEK.

• Net loss for H1 2024 was -1.6 MSEK, improved from -2.3 MSEK year-over-year; Q2 net loss was -2.7 MSEK versus -1.7 MSEK.

• Cash position strengthened by 1.9 MSEK during H1 2024, ending at 5.8 MSEK.

• Equity at period end was 2.8 MSEK, down from 8.4 MSEK at the end of H1 2023.

Outlook and guidance

• Lower inflation and recent interest rate cuts are expected to positively impact the sector, with early signs of increased willingness among retail clients to invest in new business systems.

• Three new Kassanova license agreements worth 0.5 MSEK were signed during the summer, indicating growing demand.

• Ongoing product development and new launches, including Kassanova Garden, are expected to support future growth.