Flowscape Technology (FLOWS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were 11,135 TSEK, with EBITDA of 2,543 TSEK and net profit after financial items of 401 TSEK, marking a return to profitability compared to a loss last year.

• Recurring revenue (ARR) increased 16% year-over-year to 33.0 MSEK, with strong contributions from all markets except the Middle East.

• Operating expenses (OPEX) decreased significantly to 8.0 MSEK in Q3, aided by one-time cost reductions and seasonal effects.

• New CEO Fredrik Landberg took office on October 1, 2024, with plans to refine strategy and operational structure for profitable growth.

Financial highlights

• Q3 net sales: 11,135 TSEK (11,000 TSEK last year); Q3 EBITDA: 2,543 TSEK (250 TSEK); Q3 net profit: 401 TSEK (-1,698 TSEK).

• Nine-month net sales: 31,946 TSEK (34,003 TSEK); EBITDA: 2,918 TSEK (2,022 TSEK); net loss: -3,363 TSEK (-5,851 TSEK).

• Cash flow for Q3: 2,198 TSEK (-4,289 TSEK); cash at period end: 9,229 TSEK (10,225 TSEK at year start).

• Equity at period end: 16,114 TSEK (19,477 TSEK at year start).

Outlook and guidance

• ARR growth and reduced OPEX expected to support continued profitability.

• Strategic and operational adjustments planned in Q4 to enhance focus and resource efficiency.