Precise Biometrics (PREC) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 increased to SEK 20.6 million from SEK 17.9 million year-over-year, with positive momentum in both Biometric Technologies and Digital Identity segments.

• EBITDA was positive for the third consecutive quarter, reaching SEK 0.1 million in Q2 and SEK 3.2 million for H1 2024, compared to negative results last year.

• Operating loss narrowed to SEK -5.7 million in Q2 and SEK -8.5 million for H1, reflecting improved sales and product mix.

• Annual Recurring Revenue (ARR) rose to SEK 18.6 million at period end, up from SEK 17.8 million year-over-year.

• Significant events included new customer projects, product launches, and the appointment of a new CFO.

Financial highlights

• Q2 net sales: SEK 20.6 million (+15.1% YoY); H1 net sales: SEK 42.3 million (+14.1% YoY).

• Q2 EBITDA: SEK 0.1 million (Q2 2023: SEK -0.6 million); H1 EBITDA: SEK 3.2 million (H1 2023: SEK -1.2 million).

• Q2 operating loss: SEK -5.7 million (Q2 2023: SEK -6.9 million); H1 operating loss: SEK -8.5 million (H1 2023: SEK -13.8 million).

• Q2 gross margin: 71.4% (Q2 2023: 60.3%); H1 gross margin: 71.8% (H1 2023: 62.6%).

• Cash and cash equivalents at period end: SEK 41.7 million (H1 2023: SEK 75.6 million).

Outlook and guidance

• Several new customer projects are expected to generate revenue in H2 2024 and beyond.

• Investments in marketing and sales are anticipated to drive future net sales growth.

• The company expects continued growth in the mobile market and rising demand for biometric IT security solutions.

• Strategic focus remains on increasing ARR and expanding market presence.