Precise Biometrics (PREC) Q3 2024 earnings summary

Executive summary

• Net sales grew 29% year-over-year in Q3 to SEK 22.8 million, with positive EBIT for the first time since 2020 and continued positive EBITDA for the fourth consecutive quarter.

• Strong demand in mobile, especially ultrasonic sensors and anti-tampering, with new projects in volume production and successful partnerships, notably with Qualcomm and Infineon.

• Expanded product portfolio with launches like BioLive for fraud prevention and palm recognition, targeting new verticals and embedded systems.

• Digital Identity segment saw record sales for YOUNIQ Visit in September, with growing international traction and increased ARR.

• Market trends show rising global adoption of biometrics for security, efficiency, and convenience, with positive consumer sentiment and regulatory drivers.

Financial highlights

• Q3 net sales: SEK 22.8 (17.7) million; net sales growth: 28.7% year-over-year.

• Q3 EBITDA: SEK 6.8 (-1.1) million; EBIT: SEK 1.2 (-7.3) million; net income: SEK 1.4 (-7.7) million.

• Q3 gross margin: 74.3% (64.0%); operating margin: 5.0% (-41.1%).

• Interim period (Jan–Sep) net sales: SEK 65.1 (54.8) million; EBITDA: SEK 9.9 (-2.3) million; EBIT: SEK -7.3 (-21.0) million.

• Cash flow from operating activities Q3: SEK 3.3 (-7.5) million; cash and cash equivalents at period end: SEK 41.7 (64.4) million.

Outlook and guidance

• Management expects continued growth and profitability, driven by commercialization initiatives and strong partner relationships.

• Anticipates further revenue from new product launches and expanded market presence in automotive, mobile, and physical access segments.

• Positive market dynamics with increasing demand for biometric and cybersecurity solutions globally.