Airthings reports revenue of USD 36.6 million in 2023

(Oslo, Norway – February 8, 2024) Airthings (AIRX), the global leader in air quality monitoring and energy-saving solutions, today announced its financial results for the fourth quarter of 2023. Sales revenue came in at USD 10.3 million in 4Q23, up 9% from 4Q22, and USD 36.6 million for the full year 2023, up 3% compared to 2022. ARR ended at USD 4.2 million, up 16% year-on-year.

Gross profit amounted to USD 6.5 million in the quarter, and to USD 22.3 million for the full year 2023. This corresponds to 63% gross profit margin (GPM) for 4Q23 and 61% for 2023, compared to 59% in both 4Q22 and the full year 2022.

Airthings has in 2023 implemented a more streamlined operating model focused on strengthening gross margins and growing revenues more than operating costs. Under the new operating model operating costs have been reduced by 10% year-on-year in 4Q23 and by 11% from 2022 to 2023. Consequently, the EBITDA-loss was reduced to USD 1.0 million in the fourth quarter from a loss of USD 2.8 million in 4Q22, and to a loss of USD 6.8 million in 2023 from a loss of USD 11.8 million in 2022.

“With Airthings 3.0 we are transitioning to become a lighter and more cost-efficient company with a more disciplined go-to-market approach that nevertheless holds great growth potential from increased direct sales from our website, increased sell-through with retailers and partners, revenue streams from new product launches, and more favorable price points. This strategic pivot is already bearing fruit and has placed the company on a path to profitability,” says CEO Øyvind Birkenes.

Consumer revenue came in at USD 7.0 million in 4Q23 (+14%), and USD 24.8 million in 2023 (+8%). The segment saw underlying growth across all markets and the topline was supported by +100% year-on-year sales growth on airthings.com, promotional activities, and performance with key distribution and retail partners. Gross profit came in at USD 4.3 million in the quarter (GPM 61% vs 57% in 4Q22), and USD 14.0 million in 2023 (GPM 57% in line with 2022).

Revenues from Airthings for Business (AfB) came in at USD 2.9 million in the quarter (+1%), and USD 9.7 million in 2023 (-6%). AfB revenue remains heavily impacted by large deals with individual customers that cause revenue fluctuations. Airthings is actively collaborating with several global enterprise customers and won a contract with another top Fortune-500 enterprise customer in 4Q23. Gross profit in AfB came in at USD 1.9 million in the quarter, with a gross profit margin of 66% compared to 60% in 4Q22. Gross profit for 2023 amounted to USD 6.4 million, with a gross margin of 66% up from 59% in 2022. The margin expansion was driven by increased prices, higher share of software revenues and increasing share of direct sales.

“Airthings has navigated through difficult market conditions through 2022 and 2023 and has responded with a strategy reducing cash burn and shortening the time to profitability. We have seen the early effects of inventory reductions on our cash position, and further reductions will be a source of capital going forward. Given continued execution of our revamped strategy, the company’s current business plan is expected to be fully funded through to break-even,” says Chairman of the Board Geir Førre.

The company is guiding for revenue within the range of USD 9.0 – 11.0 million for the first quarter 2024, with ARR of USD 4.2 – 4.5 million expected at the end of 1Q24.

Emma Tryti takes over as CEO on March 4th, 2024.

Practical arrangements:

The 4Q 2023 will be presented by CEO Øyvind Birkenes and interim CFO Magnus Bekkelund at 08:00(CET) at Airthings ASA headoffice, Wergelandsveien 7, Oslo, Norway. The presentation is open to the public and can also be followed via the following link:

https://events.webcast.no/airthings/presentations/grKeDWqefblRS70TO3al