NEXT Biometrics Group (NEXT) Q4 2024 earnings summary

Executive summary

• Achieved 109% year-over-year revenue growth in 2024, increasing from NOK 34.4 million to NOK 73 million.

• Reached record-high adjusted gross margin of 55% for the year and break-even in Q3.

• Secured 18 new design wins in 2024, with 5–6 in Q4, bringing total integrations to 64 by year-end.

• Signed multi-year MoU for FAP30 sensor, valued at NOK 18 million per year starting H2 2025.

• Completed a private placement in Q4 2024, raising up to NOK 40.2 million gross proceeds.

Financial highlights

• Q4 2024 revenue was NOK 13.3 million, down 7% year-over-year, impacted by India and China market disruptions.

• Adjusted gross margin for Q4 2024 was 61%, up from 45% in Q4 2023, driven by favorable product mix.

• Adjusted operating expenses rose to NOK 19.9 million from NOK 14.8 million year-over-year.

• Adjusted EBITDA for Q4 2024 was -NOK 11.8 million, compared to -NOK 8.3 million in Q4 2023.

• Cash position at end of Q4 2024 was NOK 62.9 million, up from NOK 45.5 million at end of Q3.

Outlook and guidance

• Targeting NOK 180–200 million in revenue for 2025, with most revenue expected in H2 from FAP30 launch.

• Expecting break-even quarters in the near term, with FAP30 contributing to revenue growth in H2 2025.

• Guidance to maintain gross margin above 50%.

• Prioritizing accounts receivable collection and steady cash flow.

• Anticipates resumption of Aadhaar business in India, with unfulfilled orders expected to be delivered in Q1 2025.