XMReality (XMR) Q2 2024 earnings summary

Executive summary

• Order intake for H1 2024 increased by 31.3% year-over-year, but Q2 order intake declined 10.6% compared to Q2 2023.

• Net sales decreased by 12.6% for H1 and by 17.3% for Q2 year-over-year.

• Strategic focus led to more predictable new sales and a higher quality ARR base.

• Over 30 new customers added in H1 2024, compared to 45 for all of 2023.

• Major product update released post-Q2, introducing new features and use cases.

Financial highlights

• Q2 2024 net sales: SEK 4,086 thousand (Q2 2023: 4,939), down 17%.

• Q2 operating loss before taxes: SEK -8,106 thousand (Q2 2023: -9,414).

• H1 2024 net sales: SEK 8,796 thousand (H1 2023: 10,061), down 12.6%.

• H1 operating loss before taxes: SEK -12,384 thousand (H1 2023: -16,007).

• Q2 cash flow: SEK 3,210 thousand, supported by short-term loans of 6.4 MSEK.

• Annual recurring revenue (ARR) at Q2: SEK 15,885 thousand, down 13% year-over-year.

• Gross margin remained high at 97% in Q2.

Outlook and guidance

• Financial goal to achieve positive cash flow by end of 2024 remains.

• Rights issue of approximately 36.7 MSEK planned, secured up to 70% to support capital needs.

• Cost adjustments ongoing, with most effects expected by end of Q3 to align annual cost base with revenue.

• Company actively seeking structural transactions to create shareholder value.