Brilliant Future (BRILL) Q2 2024 earnings summary

Executive summary

• ARR increased to 71,795 TSEK, with recurring revenues now a larger share of total sales.

• Cost efficiency measures and organizational restructuring incurred one-time costs but are expected to improve profitability.

• New product launches and expanded partnerships, notably with Avonova, support future growth.

Financial highlights

• Q2 2024 net sales decreased 7.9% year-over-year to 20,581 TSEK; invoiced sales down 4.5% to 20,448 TSEK.

• Q2 EBITDA was -1,921 TSEK, including 1,567 TSEK in restructuring costs; adjusted EBITDA improved to -354 TSEK.

• EBIT for Q2 was -4,564 TSEK; adjusted EBIT was -2,997 TSEK.

• Net result per share for Q2 was -0.33 SEK, down from -0.19 SEK year-over-year.

• Cash flow from operations in Q2 was -814 TSEK; cash at period end was 25,090 TSEK.

Outlook and guidance

• Financial targets for 2025: invoiced sales of at least 130 MSEK, ARR of at least 100 MSEK, and EBITDA margin of at least 10%.

• Growth is expected to be organic with stable headcount; no dividends planned until profitability is sustainable.