XMReality (XMR) Q4 2024 earnings summary

Executive summary

• Achieved a 49% reduction in Q4 operating expenses (excluding interest, depreciation, and amortization) year-over-year, despite significant one-time restructuring costs.

• EBITDA improved by 66% in Q4, from -7,905 TSEK to -2,674 TSEK year-over-year.

• Annual recurring revenue (ARR) grew to 16,426 TSEK at year-end, up from 15,909 TSEK in Q3.

• Usage of the product more than doubled for the second consecutive quarter compared to the same period last year.

• Net sales for 2024 were 17,025 TSEK, down from 19,788 TSEK in 2023.

Financial highlights

• Q4 net sales: 4,077 TSEK (Q4 2023: 4,877 TSEK); full-year net sales: 17,025 TSEK (2023: 19,788 TSEK).

• Q4 EBITDA: -2,674 TSEK (Q4 2023: -7,905 TSEK); full-year EBITDA: -13,881 TSEK (2023: -25,282 TSEK).

• Q4 operating cash flow: -1,286 TSEK; full-year operating cash flow: -14,757 TSEK.

• Q4 gross margin remained high at 94% (Q4 2023: 92%).

• Year-end cash position: 499 TSEK; equity: 5,194 TSEK; equity ratio: 18.4% (2023: 24.6%).

Outlook and guidance

• Targeting positive cash flow on a rolling 12-month basis by spring 2025.

• Expecting positive EBITDA as early as Q1 2025, following further cost reductions.

• New go-to-market strategy combines sales-led and product-led growth to drive cost-efficient customer acquisition.