ZignSec (ZIGN) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 was SEK 21.8 million, up 3% year-over-year, reflecting stable performance in core segments KYB and KYC.

• EBITDA improved to SEK -1.9 million from SEK -7.1 million, mainly due to lower personnel and consulting costs.

• Strategic review initiated to explore alternatives, including a potential sale, to maximize shareholder value.

• Rights issue in June 2024 raised SEK 24.1 million net, strengthening liquidity.

• New proof of address solution launched and generating revenue, with several new client agreements signed post-quarter.

Financial highlights

• Net revenue Q2 2024: SEK 21.8 million (up 3% year-over-year); H1 2024: SEK 43.1 million (flat year-over-year).

• EBITDA Q2 2024: SEK -1.9 million (improved from SEK -7.1 million); H1 2024: SEK -3.7 million (improved from SEK -12.5 million).

• Operating loss (EBIT) Q2 2024: SEK -20.6 million; H1 2024: SEK -40.6 million.

• Cash and cash equivalents at June 30, 2024: SEK 25.1 million, up from SEK 8.2 million a year earlier.

• Operating cash flow Q2 2024: SEK -3.9 million (improved from SEK -5.5 million year-over-year).

Outlook and guidance

• Focus for the remainder of 2024 is on deepening presence in key markets, enhancing product portfolio, and driving operational efficiencies.

• Optimism about improving growth trajectory, with ongoing adaptation to regulatory changes.