Shelly Group (SLYG) Q2 2024 earnings summary

Executive summary

• Revenue grew 49% year-over-year in H1 2024 to €41.8 million, with EBIT margin at 25.8% and net income up 58%, exceeding targets and outpacing market growth.

• All regions, especially DACH, saw above-market growth, supported by expanded distribution, product portfolio, and the LOQED acquisition.

• Installer Finder platform launched, supporting professional market penetration.

• Guidance for 2024 (€105M revenue, €26M EBIT) and 2026 (€200M+ revenue, €50M+ EBIT) reaffirmed.

• The Group completed the acquisition of Shelly Asia Ltd., increasing ownership to 80%, and is preparing for transformation into a Societas Europaea (SE).

Financial highlights

• Q2 revenue growth accelerated to 52.7% year-over-year, with H1 2024 revenue at €41.8M and EBIT at €10.8M, up 54.9% year-over-year.

• Gross margin improved to 55.1% from 49% in H1 2023; net income margin increased to 22.2%.

• Cash balance at end of June was €10.5 million, impacted by acquisition payments and working capital investments.

• Dividend of €2.3 million paid in June; equity ratio stands at 88.8%.

• Total assets increased to BGN 137,362 thousand, with total equity at BGN 121,947 thousand.

Outlook and guidance

• 2024 guidance confirmed: €105M revenue and €26M EBIT, with a small reserve for outperformance.

• 2026 goals: €200M+ revenue and €50M+ EBIT; premium app revenue expected to exceed €2.5M by 2026.

• Product pipeline includes 40-60 new products by year-end or early next year, focusing on 4th generation devices in 2025.

• Working capital and margin optimization measures to be implemented in 2025.

• Management expects continued operations under the going concern principle, with no direct impact from geopolitical conflicts.