Freja eID Group (FREJA) Q3 2024 earnings summary

Executive summary

• Group net sales rose 32% year-over-year to 11.2 MSEK in Q3 2024, with strong growth in both Freja eID and Fulfilment segments.

• Adjusted EBITDA improved to 2.5 MSEK from -0.2 MSEK in Q3 2023, driven by lower personnel costs and higher recurring revenues.

• Net result for Q3 was -4.2 MSEK, a significant improvement from -10.1 MSEK a year earlier.

• Freja eID segment remains the growth engine, with ARR up 54% year-over-year and user base up 27%.

• The company maintains a positive outlook, citing high demand, stable recurring revenues, and expanding customer base.

Financial highlights

• Q3 2024 net sales: 11.2 (8.5) MSEK, +32% year-over-year; 9M 2024: 31.6 (26.0) MSEK, +22%.

• Adjusted EBITDA Q3: 2.5 (-0.2) MSEK; 9M: 2.8 (-6.5) MSEK. Adjusted EBIT Q3: -1.3 (-4.0) MSEK; 9M: -8.6 (-17.8) MSEK.

• Net result Q3: -4.2 (-10.1) MSEK; 9M: -19.9 (-25.4) MSEK. EPS Q3: -0.18 (-0.50) SEK; 9M: -0.88 (-1.31) SEK.

• Operating cash flow Q3: 1.8 (2.1) MSEK; 9M: 2.5 (1.6) MSEK.

• Gross margin Q3: 98.0% (96.6%).

Outlook and guidance

• Management expects continued high growth in Freja eID, supported by strong demand and a robust subscription model.

• International expansion is planned via partnerships, with no negative impact on profitability focus.

• Liquidity and existing financing are deemed sufficient for at least 12 months.