Terranet (TERRNT) Q2 2024 earnings summary

Executive summary

• Selected for the MobilityXlab accelerator, enabling collaboration with major automotive OEMs and Tier 1 suppliers for proof-of-concept projects starting in August.

• Significant progress in BlincVision product development, including successful integration and outdoor testing in vehicles, marking a key milestone.

• Participation in strategic vehicle research projects with partners like Trafikverket, AstaZero, and the Vinnova-funded 'Verdas' project to improve traffic safety and align with Euro NCAP standards.

• Management team strengthened with the addition of a strategic business developer to support increased industry engagement.

Financial highlights

• Raised SEK 12.6 million through the TO7/TO7B warrant program, with a 95% subscription rate, including participation from management and board.

• Q2 2024 revenue was TSEK 0 (205 in Q2 2023); H1 2024 revenue was TSEK 380 (413), mainly from Vinnova contributions.

• Q2 operating loss was TSEK -9,985 (-10,540); H1 operating loss was TSEK -18,266 (-18,782).

• Cash flow from operating activities in H1 was TSEK -20,697 (-19,330); closing cash at June 30 was TSEK 20,863 (29,006 at Dec 31, 2023).

• Equity/assets ratio improved to 56.6% (47.7% at Dec 31, 2023).

Outlook and guidance

• Q3 and Q4 will focus on real-world proof-of-concept testing, system miniaturization, and advancing AI-based object perception.

• Plans to formalize partnerships with OEMs and Tier 1 suppliers in Q4, leveraging product readiness and ongoing demonstrations.

• Focus for H2 2024 is on further integration of BlincVision into OEM vehicles and continued product optimization.

• Upcoming MobilityXlab collaboration and authorized test track trials expected to provide critical data for system validation.

• Ongoing efforts to secure additional capital to support operations and development.