Elliptic Labs (ELABS) Q2 2024 earnings summary

Executive summary

• Achieved strong momentum in the PC/laptop market, signing two new contracts in Q2 2024, including the first in the high-volume consumer segment.

• AI Virtual Smart Sensor Platform now deployed on over 500 million devices, with 130 smartphone and 31 laptop models launched since 2016.

• Recognized as a market leader in AI virtual sensors, expanding partnerships with top OEMs and entering new device categories.

• Four of the top six laptop OEMs and three of the top five smartphone OEMs are customers.

• Signed expansion contracts with major customers, including Transsion, Oppo, and a commercial PC segment.

Financial highlights

• Year-to-date 2024 revenue reached NOK 56.1 million, up 51% from NOK 37.2 million in the same period last year.

• Q2 2024 revenue was NOK 33.9 million, a 2% increase year-over-year.

• EBITDA for Q2 2024 was NOK 11.4 million (Q2 2023: NOK 8.2 million); H1 2024 EBITDA was NOK 8.1 million, up from negative NOK 12.2 million last year, with a 14.3% YTD EBITDA margin.

• Operating expenses decreased to NOK 48.7 million from NOK 49.7 million year-over-year.

• Profit after tax for Q2 2024 was NOK 4.8 million, compared to NOK 4.0 million in Q2 2023.

Outlook and guidance

• Expects continued strong growth trajectory, with 12-month revenue exceeding 2023 by nearly 25%.

• Targeting mid-term revenue of NOK 500 million and EBITDA margin above 50%, driven by laptop vertical growth and smartphone expansion.

• Focus on monetizing existing contracts, expanding with current customers, and launching more models.

• Market recovery in PC/laptop shipments anticipated, with AI-capable devices expected to drive further demand.

• AI-enabled device share projected to reach 20% in 2024 and 70% by 2028.