Hubbster (HUBS) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was 4.6 MSEK, down from 7.2 MSEK in Q3 2023, reflecting a strategic reduction in consulting operations to focus on core survey and analytics business.

• Net loss after tax for Q3 2024 was -3.2 MSEK, compared to -2.4 MSEK in the same quarter last year; EPS was -0.12 versus -0.09.

• Annual Recurring Revenue (ARR) increased slightly to 17 MSEK from 16.8 MSEK year-over-year.

• Cash flow after financing was 0.3 MSEK, a significant improvement from -0.7 MSEK in Q3 2023; cash at period end was 0.5 MSEK.

• Workforce reduced to 24 (16 employees, 8 consultants) from 29 in the prior year.

Financial highlights

• Operating loss (EBIT) for Q3 2024 was -2.7 MSEK, compared to -2.1 MSEK in Q3 2023.

• Operating margin for Q3 2024 was -58%, down from -30% in Q3 2023.

• For the nine months ended September 2024, revenue was 20.3 MSEK (19.9 MSEK in 2023), and net loss was -8.6 MSEK (-9.7 MSEK in 2023).

• Cash flow for Q3 2024 was 0.3 MSEK, compared to -0.7 MSEK in Q3 2023.

• Number of outstanding shares at period end: 26,414,235.

Outlook and guidance

• Management expects continued positive effects from the strategic focus on scalable digital platforms and survey services, with further investments in platform technology and AI.

• The company anticipates improved long-term profitability and value creation as non-core consulting is phased out.