Airthings reports USD 8.8M revenue in 1Q23 – refinement of strategic direction

(Oslo, Norway – May 4, 2023) Airthings (AIRX), the global leader in air quality monitoring and energy-saving solutions, today announced its financial results for the first quarter of 2023. Sales revenue came in at USD 8.8 million in 1Q23, down 3% year-on-year and 7% quarter-on-quarter. 

Gross profit amounted to USD 4.9 million in the quarter, corresponding to a 56% gross profit margin (GPM) compared to 59% in both 1Q22 and 4Q22. The EBITDA-loss was USD -3.2 million, compared to a loss of USD -3.4 million in 1Q22. 

The revenue development reflects a weaker consumer sentiment, continued inventory adjustments among distributors and retailers, and a guarded investment environment in Airthings for Business.

“We are in a challenging market environment with inventory adjustments through the value chain but are pleased to see that end-user demand is holding up with more than 30% growth in Consumer device registrations compared to the same quarter last year, and that we have won some key projects in Airthings for Business that are expected to scale up over the coming quarters. Successful promotional activities are driving sales and reducing our inventories but continue to put pressure on margins in the short-term,” says CEO Øyvind Birkenes in Airthings. 

Consumer revenue came in at USD 6.4 million in the quarter, up +4% year-on-year and quarter-on-quarter. As earlier communicated, the company has supported revenues in the Consumer segment with a high level of promotional activities. This had an adverse effect on gross margins for the Consumer segment, which came in at 49% in the quarter. 

Revenues from Airthings for Business came in at USD 1.7 million in 1Q23, down 23% from 1Q22 and down 39% from 4Q22, with the previous quarter boosted by shipments to a large global enterprise customer. Gross margin in Airthings for Business remained strong at 69%. Annual recurring revenue (ARR) increased 27% year-on-year to USD 4.0 million, at the top of the guidance range provided in the 4Q22 report. 

Airthings is adapting to the challenging market conditions by identifying areas for improvements and refining its strategy. 

“Our new strategic direction will sharpen the go-to-market approach and allow us to increasingly own our customer relationships by ramping up sales through internal channels. Further it will reinforce our software-first mentality to deliver unique customer experiences, as well as improve our operating model and automate back-end processes to enable cost efficient growth. We expect the effects of the new direction to begin bearing fruits in the second half of 2023 and position us stronger than ever for reaching our long-term goals” says Chairman of the Board Geir Førre. 

For the second quarter 2023 the company expects revenue to fall within a revenue range of USD 7.0 – 9.0 million, with ARR of USD 4.0– 4.3 million expected at the end of 2Q23.

Practical arrangements:

The 1Q 2023 will be presented by CEO Øyvind Birkenes and CFO Jeremy Gerst 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/1q-2023-presentation 

Airthings is a global technology company and producer of award-winning radon and indoor air quality monitors for homeowners, businesses, and professionals. Founded in 2008, Airthings is on a mission to ensure that people around the world recognize the impact of indoor air quality and take control of their health through simple, affordable, and accurate technology solutions while optimizing energy consumption in buildings. Airthings’ products have made radon detection and indoor air quality monitoring easy to deploy, accurate, and user friendly, and have received several accolades including the TIME's Best Inventions award and CES Innovation Award Honors. Headquartered in the heart of Oslo, Norway, and with offices in the US and Sweden the company has over 130 employees from more than 35 nationalities—and counting. To see the full range of Airthings indoor air quality monitors and radon detectors or to learn more about the importance of continuous air quality monitoring, please visit airthings.com