IRISITY AB Q1
Irisity AB (publ) Interim report
1 January - 31 March 2024
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 1 |
"Building the world leader in security video analytics"
- Keven Marier, CEO
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 2 |
Table of contents | |
The Group's Summary Of The Period | 4 |
Sales & Results | 7 |
Share & Ownership | 9 |
Financial Overview | 14 |
Sustainability | 22 |
Definitions | 24 |
Financial Calendar | 26 |
This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 3 |
01
The Group's Summary Of The Period
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 4 |
1 January - 31 March 2024
- Net sales amounted to MSEK 27.6 (27.5).
- Work performed for own account amounted to MSEK 7.2 (5.5).
- Gross margin amounted to 82.7 percent (83.8).
- EBITDA amounted to MSEK -3.3(-5.5).
- Result after tax amounted to MSEK -31.0(-32.5).
- Cash and available credit lines at the end of the period was MSEK 15.2 (31.0).
- MRR at the end of the quarter amounted to MSEK 4.4 (4.4).
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 5 |
Q1: Streamlining Irisity's global operations for profitability and growth.
In 2023, our focus was on building the commercial foundation to drive long-term international and domestic sales growth. In 2024 we will continue to focus on driving sales growth while streamlining Irisity's global operations and R&D to improve profitability.
Steps to improve profitability. | Winning in transportation verticals |
In Q1 we announced the streamlining initiative of the group operations and implemented changes in customer success, support, and new product planning. The results of these changes in our group operations are expected to lower service delivery costs, improve product line profitability and optimize shared resource management.
Within R&D, streamlining initiatives have also been planned and implementation has started. These initiatives will continue in phases throughout 2024. We expect to increase development efficiency using software development automation and narrowing our customer focus. Secondly, customers segments can vary widely in how to utilize AI software, the speed of innovation and which types of hardware to use. These customer choices require our development teams to continue to work closely with customers. To streamline our R&D ways of working, we are reorganizing the R&D sites to enable each location to focus on a single customer segment and product offering.
These streamlining initiatives will lower operating costs by 5-10% by end of Q3, improve the reliability of product delivery and speed up innovation. When combined we expect to see positive impacts on future sales growth and lowering of development costs.
Geographic and AI safety product expansion
Throughout the last three quarters we have continued to expand our sales organization geographically. In January, we added a sales office in Mexico to support our growing number of partners and projects.
At the end of Q1, we announced the acquisition of Ultinous Zrt a Hungarian AI software provider with the strategy to grow Irisity's sales beyond traditional security. With Ultinous, we can immediately address the significant AI software growth potential in industrial safety use cases such as personal protection equipment, hazardous area and near miss monitoring. This acquisition also brings a new development hub in Budapest which will enhance Irisity's software investments in personalized AI solutions which leverage the latest in generative AI capabilities and solutions.
In March, we announced a significant contract awarded for a major transportation project expansion of an existing customer located on the East Coast of the United States. Valued at approximately 10 MSEK over a three- year period, this project will be delivered in several stages with the initial phase being recognized as net sales starting in Q1 of 2024. We are seeing strong interest and sales growth in the transportation verticals including airports, train operations and roadways.
Quarterly results
We have maintained a consistent net sales volume over the past 5 quarters above 27 MSEK and MRR of
4.4 MSEK. On a year over year basis, we improved Q1 net sales and EBITDA, however Q1 expenses were higher because of our increased investment in the sales organization.
Looking ahead, our Swedish IRIS school guard service is well positioned for future growth. This comes from the recent legislative changes (SOU 2024:27), aimed at simplifying and enhancing the use of surveillance cameras to maintain public order and safety while balancing individual privacy rights. Irisity's advanced technology allows municipalities to effectively combat crime while maintaining a high level of personal privacy.
Keven Marier
CEO
Irisity AB (Publ)
2024-05-23
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 6 |
02
Sales & Results
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 7 |
Sales and results in the Group (KSEK)
Sales and results in the Group (KSEK) | January-March 2024 | January-March 2023 | January-December 2023 |
Net sales | 27,587 | 27,510 | 117,599 |
Work performed for own account | 7,235 | 5,528 | 28,129 |
Other operating income | 7,151 | 347 | 7,086 |
EBITDA | -3,328 | -5,462 | -16,440 |
EBIT | -33,012 | -34,617 | -140,644 |
Operating margin % | neg | neg | neg |
Result after financial items | -33,775 | -35,254 | -143,928 |
Result for the period | -30,980 | -32,461 | -132,530 |
Earnings per share | -0.63 | -0.85 | -2.69 |
Irisity in brief | Products and services |
Irisity is a leading provider of AI-powered video analytics solutions. We develop innovative software upgrading ordinary security cameras to intelligent detection devices, while safeguarding personal privacy. Irisity currently serve customers in more than 90 countries and has active presence in Sweden, USA, Israel, Singapore, UAE, Australia, Argentina, Brazil, Mexico, Colombia and UK. We operate through a network of resellers, partners, OEMs, Central Monitoring providers (security companies) and camera manufacturers globally.
Irisity's technology safeguards people and assets by detecting incidents in real time. This includes the detection of events such as intrusions, trespassing, flames, violence, falls, and unattended objects, as well as rapid search and analysis of recorded video, and extraction of statistical data. Irisity ensures ethical guarding without infringement on personal privacy by offering all functionality with patented real-time anonymization technology.
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 8 |
03
Share & Ownership
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 9 |
The ten major owners, 2024-03-31:
Shareholders | Number of shares | Ownership interest |
AVANZA PENSION | 7,317,156 | 14.9% |
WESTERGYLLEN AB | 3,695,900 | 7.5% |
Sun Red Beach Growth Partners ApS | 3,127,608 | 6.4% |
Altshare Trusts Ltd* | 3,016,220 | 6.1% |
CHALMERS INNOVATION SEED FUND AB | 2,444,634 | 5.0% |
Runmarker, Ulf | 2,400,000 | 4.9% |
HANS ANDERSSON HOLDING AB | 1,300,000 | 2.6% |
Perninger, Bo | 1,066,000 | 2.2% |
Witte, Lars | 709,578 | 1.4% |
HANDELSBANKEN LIV FÖRSÄKRINGS AB | 614,466 | 1.2% |
The ten major shareholders in total | 25,691,562 | 52.2% |
Others | 23,538,374 | 47.8% |
Total | 49,229,936 | 100.0% |
* Paying agent of former Agent Vi shareholders
Number of shares
Irisity AB (publ) has 49,229,936 shares outstanding as of March 31, 2024.
Ownership
Irisity AB (publ), org. nr./Reg. No. 556705-4571 is a public company listed on Nasdaq First North Growth Market under the ticker IRIS. The shareholder overview describes the situation as of March 31, 2024, when 5,891 shareholders were registered.
IRISITY AB (PUBL) INTERIM REPORT Q1 2024 | 10 |
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Disclaimer
Irisity AB published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 05:56:06 UTC.
