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Irisity AB (publ) delivers growth with strengthened margins and improved profitability.

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The CEO comments on the second quarter:

Irisity continues its growth journey with maintained investment pace and cost control. Our net sales increased 60% on an organic basis and by 144% to SEK 31.9 million (13.1) including acquisitions. The gross margin strengthened during the quarter to 83.4 percent (58.2), and the monthly recurring revenue (MRR) was SEK 5.5 million (7.0) Q/Q.

We turned to positive EBITDA, which amounted to SEK 1.2 million (-2.6) including extensive pilot installations. The net result was negative because of large amortization of goodwill and intangible assets after the acquisition of Agent Vi. The cash position and cash flow have been burdened by late customer payments.

International sales are showing strength, mainly in MEA and Southeast Asia. In the American markets and in Europe, during the period we have continued to strengthen our long-term pipeline in close cooperation with our global partners. In the Swedish market, primarily in the municipal segment, sales and MRR have been burdened by a lengthy supervisory process by the privacy authority, IMY regarding a West Swedish municipality's licensing of cameras with IRIS Anonymization. During this review, many customers in Sweden have temporarily paused further rollout and in some cases terminated their contracts. We expect an outcome from IMY in line with previous decisions from the County Administrative Board in Västra Götaland County, stating that cameras with IRIS Anonymization are not subject to a permit in public places.

During the quarter, we have mitigated the effects of temporarily weaker sales in Sweden, through strong development in our other markets, we continue to build on this international presence and strength.

Marcus Bäcklund

Highlights in the second quarter of 2022:

  • Net sales SEK 31.9 million (13.1).

  • Capitalized work SEK 5.3 million (2.8).

  • Gross margin 83.4 percent (58.2).

  • EBITDA SEK 1.2 million (-2.6).

  • Profit after tax -24.2 MSEK (-6.0).

  • Cash and cash equivalents at the end of the period SEK 30.4(*) million (47.5).

  • MRR at the end of the quarter SEK 5.5 million (7.0) Q/Q.

    (*) Not including delayed customer payment of $1.3 million from customer related to the US Department of Treasury

The interim report is available at www.irisity.com For further information:

Marcus Bäcklund, Irisity CEO Phone: +46 771 41 11 00
E-mail: marcus.backlund@irisity.com

Anna Forsberg, Irisity interim CFO Phone: +46 72 504 69 17
E-mail: anna.forsberg@irisity.com

This information is information that Irisity AB (publ) is obliged to make public according to the EU's market abuse regulation. The information was submitted for publication, through the above contact persons, at 08:00 CET on 12 August 2022.

About Irisity

At Irisity we're doing real-time video analytics powered by machine learning. Irisity is a public Swedish AI-company with headquarters at Lindholmen, Gothenburg and offices in Israel, USA, UAE, Mexico, Denmark and Singapore, where the innovative spirit is flourishing. We develop smart algorithms to detect and predict suspicious activities while preserving people’s privacy. We believe that enhanced AI performance, ethics, and privacy go hand in hand, creating a positive mark within the camera security industry. Irisity’s patented solution IRISTM can be integrated into any new or existing camera infrastructure, installed directly into the camera, on server or in the cloud, to safeguarding people and assets. IRISTM product portfolio includes solutions on asset protection, traffic management, and forensic search capabilities for a broad spectrum of industries such as safe cities, education, transportation, infrastructure, and the security industry. All IRISTM functionality is available with our patented real-time anonymization, ensuring GDPR and US NDA act compliance and ethical safeguarding.

The Irisity AB (publ) share is listed on Nasdaq First North Growth Market, with the ticker IRIS, Certified Adviser: Erik Penser Bank AB +46 8 463 83 00 certifiedadviser@penser.se

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