International growth bolsters hindered home sales at Irisity

Stockholm, Sweden

According to its latest, second quarter, financial results, Irisity continues its growth journey with maintained investment pace and cost control. International sales are showing growth in certain regions, but home sales in Sweden have been hampered by "a lengthy supervisory process by the privacy authority" says, CEO, Marcus Bäcklund.

In his statement, Bäcklund reports, "Irisity continues its growth journey with maintained investment pace and cost control. Our net sales increased 60% on an organic basis and by 144% to SEK 31.9 million including acquisitions. The gross margin strengthened during the quarter to 83.4 percent, and the monthly recurring revenue was SEK 5.5 million quarter on quarter.

We turned to positive EBITDA, which amounted to SEK 1.2 million, including extensive pilot installations. The net result was negative because of large amortisation of goodwill and intangible assets after the acquisition of Agent Vi. The cash position and cash flow have been burdened by late customer payments."

According to his report, the company's international sales are showing strength, mainly in the MEA and Southeast Asia. In the American markets and in Europe, during the period Irisity has continued to strengthen its long-term supply strategy in cooperation with global partners. However, the CEO reported that in the company's home market of Sweden, and primarily in the municipal segment, "sales and MRR have been burdened by a lengthy supervisory process by the privacy authority, IMY regarding a West Swedish municipality's licensing of cameras with Iris Anonymisation."  The report states that this has caused delay and disruption to the company's sales but, Bäcklund remains positive on the subject and comments. "During this review, many customers in Sweden have temporarily paused further rollout and in some cases terminated their contracts. We expect an outcome from IMY in line with previous decisions from the County Administrative Board in Västra Götaland County, stating that cameras with Iris Anonymisation are not subject to a permit in public places."

"During the quarter, we have mitigated the effects of temporarily weaker sales in Sweden, through strong development in our other markets, we continue to build on this international presence and strength," he concludes.


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