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 expanding commercialization efforts.

• Built a robust global partner network with 60+ partners and 55 ongoing enterprise engagements, now present in key European and North American markets.

• Targeting high-security verticals such as airports, data centers, power plants, and large enterprises, with a growing customer engagement pipeline but no material commercial deployments in H1 2024.

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

• Recognized as a pioneer in biometric card technology, with a robust 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; most revenue came from a one-off license deal.

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

• EBITDA loss nearly halved to NOK -28 million from NOK -54.7 million, driven by cost reductions.

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

• Cash at end of H1 2024 was NOK 25.2 million, down from NOK 75.9–76.0 million a year ago.

Outlook and guidance

• No further cost savings expected from current restructuring; focus is on revenue generation through enterprise deals and major pilots in H2 2024.

• Burn rate expected to decrease further, approaching EBITDA level.

• Company is not seeking additional partners but is focused on converting existing pipeline into commercial deployments.

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