Zwipe (ZWIPE) Q2 2024 earnings summary

Executive summary

• Strategic shift in January 2024 to focus on biometric access control, moving away from payment cards and accelerating commercialization efforts.

• Expanded global partner and distribution network across Europe and North America, now with 60+ partners and 55+ ongoing enterprise engagements.

• Targeting high-security verticals such as airports, data centers, power plants, and large enterprises, with additional interest in automotive, transport, luxury, and industrial sectors.

• No material commercial deployments or significant revenue in H1 2024, but robust pipeline with over 2.3 million employees in current customer engagements.

• Recognized as a pioneer in biometric card technology with a strong patent portfolio and blue-chip customer engagements.

Financial highlights

• H1 2024 revenue was NOK 0.6 million, down from NOK 1.7 million in H1 2023; included a NOK 0.5 million one-off license deal.

• Operating expenses reduced by 57–60% year-over-year to NOK 29–29.4 million due to restructuring.

• EBITDA loss improved by about 50% to NOK -28 million from NOK -54.7 million in H1 2023.

• Average monthly burn rate decreased to NOK 6.8 million from NOK 9.9 million in H1 2023.

• Cash and cash equivalents at end of H1 2024 were NOK 25.2 million, down from NOK 75.9–76.0 million a year earlier.

Outlook and guidance

• Near-term priority is to close end-user enterprise deals and announce major pilots and commercial deployments in H2 2024.

• Additional reductions in burn rate are expected, with no further cost savings from current restructuring.

• Actively evaluating financing options to support ongoing operations.

• Market outlook for access control cards and readers remains positive, with projected CAGRs of 7.0% and 7.2% through 2029.