Touchtech (TOUCH) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw 7% revenue growth and 32% increase in pre-tax profit year-over-year, with positive cash flow and seven consecutive quarters of EBITDA and profit growth.

• Strategic focus on product innovation, including AI-driven smart recommendations and Virtual Try-On, with new revenue streams targeted.

• Financial stability achieved, enabling continued investment in growth and product development.

Financial highlights

• Q3 2024 net revenue: 5,883 TSEK (up 7% YoY); nine-month net revenue: 17,634 TSEK (up 3% YoY).

• Q3 EBITDA: 4,377 TSEK (up from 3,318 TSEK YoY); nine-month EBITDA: 13,253 TSEK (up from 7,999 TSEK YoY).

• Q3 pre-tax profit: 1,832 TSEK (up from 1,384 TSEK YoY); nine-month pre-tax profit: 6,251 TSEK (up from 2,722 TSEK YoY).

• Q3 EPS: 0.17 SEK (up from 0.12 SEK YoY); nine-month EPS: 0.56 SEK (up from 0.25 SEK YoY).

• Recurring SaaS license revenue declined 12% YoY due to a temporary cap agreement with Bestseller; customer-funded development revenue rose 18%.

Outlook and guidance

• Focus on scaling Virtual Try-On and smart recommendations as new services, aiming for additional revenue streams.

• Continued product innovation and growth strategy, leveraging strong financial position.