Flowscape Technology (FLOWS) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 decreased by 9.5% year-over-year to 20,811 TSEK, mainly due to delayed projects and weak sales outside the Nordics.

• Annual recurring revenue (ARR) increased 14% year-over-year to 32.0 MSEK, supporting long-term stability.

• Operating costs rose due to one-time expenses for CEO recruitment and staff restructuring.

• Cash position declined to 7,031 TSEK at quarter-end, impacted by delayed customer payments.

Financial highlights

• Q2 net sales: 10,391 TSEK (down from 11,668 TSEK year-over-year); H1 net sales: 20,811 TSEK (down from 23,003 TSEK year-over-year).

• Q2 EBITDA: -212 TSEK (1,307 TSEK prior year); H1 EBITDA: 375 TSEK (1,772 TSEK prior year).

• Q2 EBIT: -2,318 TSEK (-666 TSEK prior year); H1 EBIT: -3,765 TSEK (-4,164 TSEK prior year).

• Q2 net result: -2,318 TSEK (-655 TSEK prior year); H1 net result: -3,764 TSEK (-4,143 TSEK prior year).

• Q2 cash flow: -4,267 TSEK (213 TSEK prior year); H1 cash flow: -3,194 TSEK (-892 TSEK prior year).

Outlook and guidance

• Expectation of improved results from North American partner sales strategy by year-end.

• OPEX expected to stabilize after one-off costs in Q2.

• Focus remains on growing ARR for long-term profitability.