Xplora Technologies (XPLRA) Q3 2024 earnings summary

Executive summary

• Achieved record highs in revenue and profitability in Q3 2024, with group revenue up 35% year-over-year to NOK 257.1 million and EBITDA at NOK 30.2 million, the highest in company history.

• Service revenue grew 36% year-over-year to NOK 75.3 million, with the subscription base reaching 326,000, up 44% year-over-year.

• Cash position strengthened to NOK 177 million, up from NOK 116 million a year ago, providing flexibility for strategic initiatives.

• Announced a public offer to acquire Doro AB, aiming to expand market presence and accelerate growth in the senior segment.

• Completed AT&T certification and launched ninth MVNO, finalizing strategic shift to a high-margin service model across all core markets.

Financial highlights

• Total revenue: NOK 257 million (+35% y/y); device revenue: NOK 182 million (+36% y/y); service revenue: NOK 75 million (+36% y/y).

• Gross profit rose 45% to NOK 125 million, with overall gross margin improving to 49% (up from 45% y/y); device gross margin: 34%, service gross margin: 83%.

• EBITDA reached NOK 30 million (margin 12%, up from 4% y/y); EBIT: NOK 15.2 million; net profit before tax: NOK 13.5 million.

• Operating expenses increased to NOK 95 million, mainly due to higher marketing and payroll costs.

• Cash flow from operating activities was NOK 70 million in Q3, ending the quarter with NOK 177 million in cash and equivalents.

Outlook and guidance

• On track to meet or exceed the 15% revenue growth target for 2024, with strong momentum expected to continue into Q4.

• Focus on growing service revenue, improving operating expense efficiency, and maintaining CapEx below NOK 20 million.

• Plans for new product and service launches, including B2B SaaS integration, youth phones at MWC 2025, and a senior watch in December 2024.

• Doro AB acquisition expected to accelerate growth, especially in the senior segment, and support the goal of one million subscriptions.

• Q4 is expected to be strong year-over-year, continuing the positive trend.