Elliptic Labs (ELABS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NOK 28.2 million, up 29% year-over-year, with year-to-date revenue at NOK 84.3 million, a 43% increase from the prior year period.

• Positive EBITDA of NOK 8.6 million year-to-date, up from negative NOK 15.1 million last year, with a 10% EBITDA margin.

• Strategic milestones include the launch of Lenovo Smart Share, expansion into PC accessories, and first-time deployment of two AI Virtual Smart Sensors on a single laptop model.

• Over one-third of all shipped products in company history were launched in 2024, with 53 new smartphone and 15 new laptop models launched this year.

• The company is transitioning from a component provider to a strategic AI platform partner, moving up the software stack and increasing value per device.

Financial highlights

• Q3 2024 revenue was NOK 28.2 million, up 29% year-over-year but down sequentially from NOK 33.9 million in Q2 2024.

• Year-to-date revenue reached NOK 84.3 million, a 43% increase from NOK 59.1 million in the same period last year.

• Positive EBITDA of NOK 8.6 million year-to-date, with a 10% margin, and Q3 EBITDA of NOK 0.5 million, a significant improvement from negative NOK 2.9 million in Q3 2023.

• Q3 2024 net loss was NOK -4.1 million, improved from NOK -6.9 million in Q3 2023.

• Cash and cash equivalents at quarter-end were NOK 67.1 million, with negative operating cash flow of NOK -19.1 million due to increased receivables.

Outlook and guidance

• Expectation of improved cash conversion in Q4 due to renegotiated payment terms, with payments now aligned to contract signing rather than shipments.

• Focus remains on monetizing existing contracts, expanding customer relationships, launching more models, and increasing sensors per device.

• On track toward a mid-term revenue target of NOK 500 million and >50% EBITDA margin, supported by robust execution and market leadership.

• Anticipates strong demand for AI-enabled PCs, with AI-capable shipments projected to surpass 100 million units in 2025.

• Positioned to benefit from market recovery and ongoing innovation in laptops and smartphones.