Airthings delivered strong top-line growth in Q2 2024; updates strategy

(Oslo, Norway – August 21st, 2024) — Airthings (AIRX), a global leader in air quality monitoring and energy-saving solutions, reported revenues of USD 8.7 million in the second quarter of 2024, up 17 percent from the same period last year. Growth was driven by increased sales in the Consumer segment, which grew 37 percent year-on-year to USD 6.8 million in the quarter. ARR was USD 4.3 million at the end of the second quarter, up from USD 4.0 million in the same period last year.

“The Consumer and Business segments had opposite developments in the quarter: In the Consumer segment we achieved continued strong growth and increased customer loyalty, while sales in the Business segment lagged due to challenging market conditions and order postponements,” says CEO Emma Tryti.

Gross profit amounted to USD 5.4 million in the quarter, corresponding to a 62 percent gross profit margin (GPM), about the same level as the same quarter last year, despite a significantly higher share of revenues from the Consumer segment.

Performance and insights gained during the first half of 2024 triggered a review and update of the company’s strategy to make sure Airthings capitalizes on market trends and ensures the best possible return on investment in the short to medium term. Climate change and general health awareness contribute to increased focus on indoor air quality, and Airthings is well positioned to capture business in a rapidly growing market for health-tech devices and services.

“Since the Airthings 3.0 strategy, announced at the Capital Market Day last year, we have continued our progress towards profitability. To accelerate the process, we will simplify our organization and operations and focus on one, shared and customer-centric value proposition across segments. Airthings will empower people to breathe better at home, at school and at work,” says Tryti.

Going forward, building control will be developed and distributed through partners, and not as part of Airthings’ core offering. Proactive direct sales to non-scalable business customer segments will be halted. As part of establishing a leaner and more focused organization, the workforce will be reduced by 20 percent during the second half of 2024.

In addition to updating its strategy, the company has set a new target for profitability: Airthings aim to be EBITDA positive for the second half of 2025, and for the full year 2026, and expect that the current operating plans remain fully funded to break even.

“Our products and solutions meet the needs of individuals, families, businesses and authorities, all increasingly aware of the importance of health-driven indoor air quality. Our insights confirm that people in many parts of the world now consider indoor air quality as a “must have”, rather than a “nice to have”. We expect this trend to grow. And we will be there to capture market share, capitalizing on our position to ensure profitable growth,” said Tryti.