Gothenburg, Sweden - March 21, 2025 - Irisity AB (publ), a leading provider of an open platform for AI video analytics' announces today that its preliminary financial performance for the fourth quarter of 2024 is weaker than expected due to revised timing of revenue recognition, project delays and increased reservations for doubtful accounts receivables.
Revised timing of revenue recognition, reservation for doubtful accounts receivable and effects on Q4
During the 2024 Q4 and Year End audit, the Company's auditor has recommended, and the board has approved, to revise the timing of revenue recognition related to partner contracts. The change more closely aligns recognized revenue with end-customer project software delivery and invoicing dates.
This revision will be implemented retroactively for Q1 thru Q3, 2024 to reduce risk associated with extended project delivery timelines, such as foreign exchange rates, changes in ordered quantities or products and delays in invoice collection.
The resulting impact for this in 2024 is a reassessment and reversal of previously reported net sales by MSEK 13.7. These orders will be placed into Irisity's order book and are expected to be net sales in 2025. In addition, a reservation for doubtful accounts receivables related to the partner contracts of MSEK 14.7 has also be taken.
The net revenue for the fourth quarter before revised timing of revenue recognition were in the range of MSEK 17-19. After the reversal of previously reported net sales the preliminary Q4 net sales results are MSEK 4.66.
Q4 EBITDA has been negatively impacted by a preliminary total of MSEK -40.7. This impact is the cumulative effect from the revised timing of revenue recognition (MSEK 13.7), reservation of doubtful accounts (MSEK 14.7) and delays in three large projects. As a result, these delays caused an additional reservation of doubtful accounts receivables of MSEK 12.2 has been taken in Q4.
Importantly, this is a non-cash accounting adjustment that does not impact the company's cash position, liquidity, or underlying business fundamentals.
Preliminary figures Q4 2024:
- Invoicing is expected to be between MSEK 38.0 to 40.0.
- Net sales are expected to be MSEK 4.66
- EBITDA is expected to be MSEK -63.58
- Result after tax is expected to be MSEK -98.84
- Cash and cash equivalents at the end of the period MSEK 7.55
Irisity's full financial performance will be presented in the interim report January - December 2024 released on March 25, 2025, at 08:00am CET.
For further information, please contact:
Keven Marier, CEO, Irisity AB, +46 771 41 11 00, keven.marier@irisity.com.
This 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 agency of the contact person above, at 19:20 CET on March 21, 2025.
About Irisity
Irisity's AI Open Platform enhances any camera and video management system by integrating a choice of advanced AI and video metadata management featuring hybrid architecture, built-in anonymization, and flexible deployment (on-premises, cloud, or hybrid). Globally trusted in over 3000 locations, our platform delivers real-time, efficient, and precise data, augmenting human decisions to improve safety, operational efficiency and organizational intelligence.
The Irisity AB (publ) share is listed on Nasdaq First North Growth Market, with the ticker IRIS, the Company's Certified Adviser is Carnegie Investment Bank AB.
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