Interim report, Q3 2024 - Aixia Group AB (publ)

Mölndal                                                                                      2024-10-24

Group financial overview

Aixia achieved a turnover of 312 MSEK during the first three quarters!This is 100% more than we have ever accomplished in a full year before. Aixia delivered an EBITDA of 2.4 MSEK in Q3, which is 39% higher (1.7 MSEK) than the same period the previous year, and 160% higher than the entire year of 2023 (0,9 MSEK).

• Annual Recurring Revenue (ARR) from ongoing operations increased by 14.8% in Q3, reaching 8.3 MSEK (7.3 MSEK in the same period last year).

• The gross margin for ongoing operations has steadily increased quarter by quarter. Due to the significant deal in Q1, comparison figures with the previous year are not representative. As a result, they are not presented in this report, but we intend to highlight the development in figures and percentages in future reports.

• The group’s earnings per share for Q3 2024 stand at SEK 0.58, which is 35% higher than SEK 0.43 in the same period last year. For the first three quarters of this year, earnings per share are SEK 10.10, compared to SEK -1.45 in the same period last year.

• Our cash/bank balance has increased significantly, to 16.6 MSEK, which clearly shows our strong financial position and stable liquidity. Compared to the same period last year, this represents an impressive increase. The slightly lower cash balance compared to Q2 is primarily due to an increase in accounts receivable, reflecting heightened business activity. This development is a natural part of our growth, and we view it as positive and without risks to our overall financial stability.

• Capitalized work for own account in Q3 (1.6 MSEK) includes adjustments for Q1 and Q2, and is YTD 0.9 MSEK lower than what was capitalized in the same period last year.

A MESSAGE FROM THE CEO

A historic milestone and our path forward!

It is with great pride that I announce that Aixia, for the first time in the company’s history, has surpassed a 300 MSEK revenue. Already during Q3, with one quarter left of the year, we have achieved a revenue of 312 MSEK. That represents a 100% increase compared to what we have ever accomplished in a full year before. Additionally, we report an EBITDA of SEK 2.4 million for the third quarter (compared to SEK 1.7 million in the same period last year), which represents a 39% increase over Q3 last year and 160% of the entire 2023 result of SEK 0.9 million. This is clear evidence that our growth and innovation strategy is yielding results.

Strenghtened financial goals

Building on this success, we have also clarified our long-term financial targets. We am to achieve a revenue of 620 MSEK by 2026 and 987 MSEK by 2028. These forecasts include 1–2 major deals per year, similar to the one we completed during Q1 this year. This signals strength to the market and establishes a clear direction for Aixia as a company, for our employees, owners, customers, and other stakeholders.

An example that underscores our goals is IDG’s Worldwide Artificial Intelligence System Spending Guide, which forecasts an annual growth rate (CAGR) of 26.9% for AI investments until 2027 at least. This is more than fore times higher than the global annual CAGR for IT investments, which is estimated at 5.7% over the same period.

The market position

We are in the midst of a transformative shift and have entered a new era where AI and digital innovation are not just opportunities but necessities for companies and organiations that want to stay ahead. At Aixia, we are convinced that AI is the primary driving force for reshaping products, services, and work methods, and we recognize the immense potential this technology has to addess the challenges and opportunities the market faces.

Technological advances like AI play a crucial role in how we will navigate the economic and technological landscapes of today and tomorrow. Ai is not just a tool for improving efficiency – it is a key to creating long-term value and sustainable growth. We see this shift happening globally, and I believe that the time is right for Swedish companies and the public serctor to take a step into the future.

The increasing demand for digitalization across sectors, from manufacturing to services, is drving investments in AI solutions. Aixia has taken a leading role in this transformation by offering both technological architecture and specialized expertise to companies looking to scale up their AI development and leverage the benfits that applied AI can offer. We are seeing a significant rise in concrete decisions and investments moving forward. Organizations that can adapt and harness the full potential of AI will not only survive but also thrive and lead in their respective industries.

At Aixia, we continue to invest in technologies that help our customers transform their operations and strengthen their competitiveness through AI. Thanks to our ongoing market activities, such as our initiative Aixia Innovation Day, we are creating a platform to deepen the understanding of how AI can lead to real change and value-driven solutions in our customers’ businesses.

Aixia will continue to shape the future, ensuring that we keep up with technological advancements and lead the way!

A continuously strong market position

In Q3 2024, we organized the Aixia Innovation Day, which has significantly impacted our future business prospects and market processing. The event facilitated direct contact with potential customers and partners by creating a platform where new technologies and solutions are showcased, raising awareness of Aixia’s expertise in AI and its technological architecture. This has reinforced Aixia’s position as the leading player in these areas and opened doors to new business opportunities. It has also helped deepen relationships with existing customers and suppliers and expand Aixia’s market presence. Customers, suppliers, and media representatives alike have agreed that the event was a success, exceeding all expectations.

In the past quarter, we have seen a marked improvement in the business climate, with more companies recognizing the value of investing in AI technology. This trend is reflected in increased activity across all our business areas. Demand for our solution has grown steadily, particularly 

evident in the growth of our ARR business (Annual Recurring Revenue) and service revenues. As we move into Q4, we see that his interest continues to rise, confirming that the market is ready for the AI-driven solutions we offer – whether in AI solutions for the industry, our AIaaS offerings, or AI integrations with SaaS platforms.

With sustained trends in both growth and profitability, we approach Q4 with energy, enthusiasm, and confidence! We remain strong in our vision and look forward to meeting our customers’ growing needs.

//
Mattias Bergkvist CEO, Aixia Group AB (publ)

Significant events Q3 2024

2024/07/04
Aixia AB has received a significant order valued at 5.1 million SEK from a leading global telecommunications company. This order, in collaboration with Nvidia, will support the next generation of mobile communications technology.

2024/07/10
Aixia, a premier provider of innovative network solutions, is pleased to announce a significant investment in its advanced network solutions from a current customer, one of Sweden’s leading hospitality companies. This substantial deal, valued at 5.3 million SEK, underscores the hospitality company’s commitment to upgrading its aging network infrastructure with a Next Generation networking platform, including state-of-the-art WiFi from Arista Networks.

2024/07/31
Aixia, a pioneer in AI infrastructure solutions, proudly announces that it has received the first order in Scandinavia for the cutting-edge Nvidia DGX B200 system from an existing customer in the automotive industry. This groundbreaking order, valued at 6.4 million SEK, underscores Aixia’s leadership in delivering advanced AI development solutions.
The Nvidia DGX B200 system represents a significant leap forward in AI technology, offering three times the training performance and fifteen times the inference performance compared to the previous generation DGX H100. This powerful system is poised to accelerate AI-driven innovation and efficiency within the automotive sector.

2024/08/06
Aixia secures an order regarding a communication solution for datacenter architecture with a European energy company and its Swedish division. The solution is based on Arista and ensures that the company can continue to grow and develop around AI in a safe way. The value of the order amounts to SEK 2.1 million
 

Significant events after the end of the period

2024/10/07​​​​​​​
Aixia announces that it has taken an order for the next generation high-performance storage system from VAST Data. The order, which is worth approximately SEK 10.2 million, comes from an important existing customer in the automotive sector and is part of their continued investment in scalable and high-performance AI-focused data center infrastructure.

The advanced storage system from VAST Data will be integrated into the customer’s existing data center to meet the increasing demands for data management and performance. The storage solution is designed to support the customer’s growing need for data capacity and ensure optimal availability and efficiency in their business.

2024/10/21​​​​​​​
Aixia, a leading player in AI and technological innovation, announces its long-term financial goal that extends until 2028. With its sights set on steady growth in the coming years, Aixia aims to achieve a turnover of SEK 620 million by 2026 and further to SEK 987 million in 2028.

This growth plan is based on strategic decisions and includes the ambition to complete 1-2 major deals annually, similar to the successful deal completed in the first quarter of 2024. Aixia has continuously developed its portfolio of advanced AI solutions, which has laid the foundation for this robust growth strategy.

This information is information that Aixia Group AB (publ) is required to make public pursuant to the EU Market Abuse Regulation. The information was provided by the above contact, for publication 2024/10/24.

F O R M O R E I N F O R M A T I O N /

Get in touch with the company at:
CEO Mattias Bergkvist
Phone: 031-762 02 40
info@aixia.se
www.aixia.se

Aixia Group AB
Taljegårdsgatan 11
431 53 Mölndal