Rapporter | 11 Nov 2022 | Irisity

Irisity AB (publ) reports a quarter impacted by quarterly sales fluctuations.

The CEO comments on the third quarter:

Irisity continues to focus on large international customers and long-term projects. In the third quarter several agreements were postponed to subsequent period. The quarter was also burdened by an aborted project in South America which amounted to 6 MSEK and a market in Sweden overshadowed by the privacy authority IMY’s lengthy supervisory process. Net sales fell by 24% to SEK 13.3 million (17.2). The gross margin was 67.6 percent (59.1), and the monthly recurring revenue (MRR) was SEK 4.7 million (5.5) Q/Q.

EBITDA amounted to -14 MSEK (0.9) because of sales deferred to subsequent quarters. The net result was negative because of large amortization of goodwill and intangible assets after the acquisition of Agent Vi. The cash position and cash flow have been impacted by deferred sales and late customer payments, but also strengthened by implemented cost savings. After the end of the period, the company took out a loan facility which, together with other credits, gives the company cash liquidity as of the first of October of SEK 55 million, which is expected to cover the company’s capital needs until positive cash flow.

In connection with the company publishing its financial update for Q3 on October 27, large trading in the share was triggered. Most of the net sales volume consisted of former AgentVi owner’s shares that were recently released from lock-up, which were sold through the paying agent Altshuler.

We continue to build our international pipeline and repeat the indicative guidance from the financial update of October 27, expecting a fourth quarter with sales exceeding last year’s fourth quarter as well as previous quarters this year.

Marcus Bäcklund

Key figures during the third quarter of 2022:

•           Net sales SEK 13.3 million (17.2).

•           Capitalized work SEK 3.9 million (3.5).

•           Gross margin 67.6 percent (58.7).

•           EBITDA -14 MSEK (0.9).

•           Profit after tax -40.5 MSEK (-2.5).

•           Cash and cash equivalents at the end of the period SEK 18 million (163.4).

•           MRR at the end of the quarter SEK 4.7 million (5.5) Q/Q.

The full interim report is available at www.irisity.com.

For further information:

Marcus Bäcklund, Irisity CEOAnna Forsberg, Irisity interim CFO

Phone: +46 771 41 11 00Phone: ‭+46 72 504 69 17‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

E-mail: marcus.backlund@irisity.comE-mail:anna.forsberg@irisity.com

This information is information that Irisity AB (publ) is obliged to make public according to the EU’s market abuse regulation. The information was submitted for publication, through the above contact persons, at 08:00 CET on 11 November 2022.

About Irisity

Irisity AB (publ) is a world-leader in AI-powered video analytics solutions for enhanced safety and security. As of October 13, 2021, Agent Vi is part of Irisity. Founded in 2006, Irisity has offices in Sweden (HQ), Israel, North and South America, UAE, Denmark, Japan and Singapore. The combined company is serving a network of integrators, distributors, and technology partners globally.

The Irisity AB (publ) share is listed on Nasdaq First North Growth Market, with the ticker IRIS, Certified Adviser: Erik Penser Bank AB +46 8 463 83 00 certifiedadviser@penser.se