Revenues for the quarter were SEK27.6m, implying growth of 121% Y/Y. This was short of guidance for SEK37–42m. The shortfall was the result of four factors: 1) a higher share of monthly recurring revenue contracts, 2) negative currency effects of around SEK 0.5m, 3) regulatory delays to Swedish municipality products, 4) delays in Europe and the Middle East owing to ongoing conflicts in the regions. One aspect of the report that stuck out was the company’s record-high gross margin of 94.1%. EBITDA for the quarter came in at SEK-12.7m. This was weighed down by a negative non-cash flow impacting item of SEK 8.7m stemming from currency revaluation of a loan to Agent Vi.

Following the close of the quarter, the company acquired Ultinous, based in Sweden and Hungary. The acquisition will complement Irisity’s technology in edge computing, broadening its offering within the Nvidia ecosystem. It also expands its offering to include several functions in practical security, having previously focused on surveillance security. Irisity sees cost and revenue synergies through this acquisition, as Ultinous can utilise Irisity’s global sales channels. The acquisition is paid for with a non-cash issue of nine million shares at SEK5 per share. In conjunction with the acquisition, Irisity is carrying out a directed share issue on the same terms as the non-cash issue to bolster its liquidity and financial position. The two issues lead to a dilution of 26.8%.

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