Elliptic Labs (ELABS) Investor Presentation summary

Business overview and strategy

• AI software platform deployed on over 500 million devices, aiming to enhance user experiences and device interoperability.

• Focus on replacing hardware sensors with AI virtual sensors, reducing costs and environmental impact.

• Expanding product offerings with contextually aware AI agents and virtual sensors for presence, proximity, and device interaction.

• Strategic partnerships, such as with Lenovo, drive cross-platform solutions like Smart Share, supporting both iOS and Android.

• Growth driven by continuous innovation and moving up the software stack to increase customer value and lock-in.

Financial performance

• Achieved 93% revenue growth in 2024, reaching NOK 131.9m, with first profitable year and EBITDA margin of 18.8%.

• Q4 2024 revenues from contracts hit NOK 47.6m, up 416% YoY, with EBITDA margin at 34.5%.

• Total revenues increased 91.5% from 2023 to 2024, while operating expenses rose only 4.8%.

• Positive operating cash flow of NOK 13.6m in Q4 2024, with cash position improving to NOK 76.4m.

• Equity ratio increased to 90%, reflecting a strong balance sheet and funding for growth plans.

Market and customer expansion

• Smartphone shipments by customers grew 13% in 2024, outpacing global market growth of 7%.

• Expanded launches across smartphones and laptops, with increasing number of models and products each year.

• Multiple new devices launched in Q4 2024, including Lenovo, VIVO, Redmi, Infinix, Lava, and HONOR.

• License fee per shipped device model, with revenue journey moving from milestone to pay-as-you-go as volumes grow.

• Moving up the software stack with enterprise license agreements increases customer value and price point.