Divio Technologies (DIVIO) Q3 2024 earnings summary

Executive summary

• Net sales grew 11% year-over-year in Q3 2024 to KSEK 5,481, driven by subscription revenue growth and a major new healthcare client contract.

• MRR in September 2024 reached KUSD 209, up 38% from the same quarter last year, reflecting strong recurring revenue momentum.

• EBIT loss improved slightly to KSEK -3,540 from -3,618 year-over-year, with EBITDA loss narrowing to KSEK -1,933.

• Cash position declined sharply to KSEK 1,201 from KSEK 20,783, with negative operating cash flow and increased capitalized development expenses.

• A fully guaranteed rights issue of MSEK 17.5 was completed post-quarter to strengthen liquidity.

Financial highlights

• Q3 2024 net sales: KSEK 5,481 (+11% YoY); YTD net sales: KSEK 15,656 (+6% YoY).

• Q3 EBIT: KSEK -3,540 (improved from -3,618 YoY); YTD EBIT: KSEK -13,520 (down from -10,422 YoY).

• Q3 EBITDA: KSEK -1,933 (improved from -2,074 YoY); YTD EBITDA: KSEK -8,804 (down from -5,949 YoY).

• Cash flow from operating activities in Q3: KSEK -4,407 (vs. 14,522 YoY); YTD: KSEK -8,117 (vs. 13,377 YoY).

• Cash at period end: KSEK 1,201 (down from 20,783 YoY).

Outlook and guidance

• Management targets profitability in 2025, supported by recent sales wins, cost control, and new equity raised.

• Strategic focus on expanding sales capabilities, partner collaborations (notably AWS), and platform enhancements.