Q1 revenues came in at SEK 27.5m, showing growth of -9% y/y and 123% q/q. Sales stemmed partly from the order book of SEK 45m that was presented with the company’s Q4 2022 report. Beyond its order book, the company has won deals that were realised during Q1. EBITDA in the quarter was SEK -5.5m. Profitability has been hindered by the active sales work undertaken at a number of large international trade fairs during the quarter. We thus believe the company’s guidance for improved profitability and growth during the year is fair. After the quarter closed, the company conducted a directed share issue of SEK 17.5m to the newly appointed CEO. This, together with the available cash of SEK 31m, strengthens Irisity’s financial position.

We have enormous confidence in Irisity’s technology, thanks to the technical validation it has received from several large players in the field. In Q4, the company signed two framework agreements with key players in the ecosystem. Moreover, interest in the industry for software investments that facilitate surveillance work is substantial. During 2022, Irisity had repeated problems with project delivery. We believe this was partly the result of winning larger and more complex projects for which it lacked the full delivery capacity. We consider the robust q/q growth seen in Q1 to be proof the company is now starting to deliver.

Estimates remain cautious