Airthings reports revenue of USD 35.5 million for 2022 and fully underwritten share issue

10 Feb 2023 07:00 CET

(Oslo, Norway – February 10, 2023) Airthings (AIRX), the global leader in air
quality monitoring and energy-saving solutions, today announced its financial
results for the fourth quarter of 2022. Sales revenue came in at USD 9.5 million
in 4Q22 and USD 35.5 million for the full year 2022, up 5% from 2021.

Gross profit amounted to USD 5.6 million in the quarter, and USD 21.0 million
for the full year 2022. This corresponds to 59% gross profit margin (GPM) for
both 4Q22 and 2022, compared to 57% in 4Q21 and 61% in 2021.

Revenue in the quarter ended within the lower end of the revenue range outlined
in October and declined 10% from the fourth quarter in 2021. The decline
reflects that channel partners in the consumer segment are reducing inventories
and that Airthings for Business sees longer sales lead times in the current
economic environment.

“End-user demand has held up well, although an uncertain market outlook is
driving channel partners to reduce risk and push orders out in time. That said,
the inventory levels at our channel partners have decreased significantly
throughout 2022 and has affected our revenue, but this is also a potential
opportunity going into 2023.” says CEO Øyvind Birkenes in Airthings.

Consumer revenue came in at USD 6.2 million in the quarter (-6%), and USD 23.0
million for the full year (-2%). Airthings did however see a healthy 20%
year-on-year growth in annual device registrations for smart products in
Consumer in 4Q22, and 23% year-on-year growth for 2022. Revenues from Airthings
for Business amounted to USD 2.8 million in 4Q22 (-13%), and USD 10.3 million
for 2022 (+49%). Annual recurring revenue (ARR) increased 26% year-on-year to
USD 3.6 million, of which Airthings for Business accounted for USD for USD 2.5
million.

Airthings is adapting to the slowdown in revenue growth and the market
uncertainties by intensifying its focus on optimizing business operations,
reducing inventories, and improving the cash position. Furthermore, the Company
will be focused on sharpening the strategic direction of Airthings for Business
and enhancing its value proposition, with a key component being the
strengthening of the energy optimization offering.

“We believe these are prudent steps to ensure the long-term profitable growth of
the company, but it also makes it unlikely we will reach our USD 100 million
sales target already in 2024. We remain committed to realize the long-term
growth potential of our leading air quality products and technologies, as shown
also by our continued and increased support through the capital contribution
announced today,” says Chairman of the Board Geir Førre.

For the first quarter 2023 the Company expected revenue to fall within a wide
revenue range of USD 8.5 – 11.5 million, with ARR of USD 3.7– 4.0 million
expected at the end of 1Q23.

FULLY UNDERWRITTEN SHARE ISSUE

Based on the Company’s financial position, and following an offer received from
the Company's largest shareholder Firda AS and A Management AS, the board of
directors of the Company has resolved to propose a private placement of new
shares to raise NOK 75 million in gross proceeds, to be conducted after close of
trading on the Oslo Stock Exchange on 13 February 2023 (the “Private
Placement”). Firda AS together with A Management AS has committed to subscribe
for and be allocated NOK 50 million in such Private Placement, and has agreed to
guarantee full subscription of the remaining NOK 25 million at a subscription
price of NOK 3.20.

Completion of the Private Placement will be subject to approval by an
extraordinary general meeting of the Company.

Firda AS and A Management AS are represented on the Board by Geir Førre and
Aksel Lund Svindal, respectively.

The timeline and the detailed terms of the Private Placement will be announced
in a separate stock exchange announcement, expected to published after 16:30 CET
on Monday 13 February 2023.

Following completion of the Private Placement, the Board will consider a
subsequent offering of new shares (the “Subsequent Offering”) to shareholders
not allocated shares in the Private Placement. The subscription price in any
such Subsequent Offering will be equal to the price in the Private Placement. If
completed, it is expected that shareholders of the Company as of close of
trading on 13 February 2023, as recorded in VPS on 15 February 2023, who hold
shares below a certain threshold, and who are not resident in a jurisdiction
where such offering would be unlawful, or would (in jurisdictions other than
Norway) require any prospectus filing, registration or similar action, will be
eligible to participate in the Subsequent Offering.

The Subsequent Offering will, inter alia, be conditional upon (i) completion of
the Private Placement, (ii) a resolution of the extraordinary general meeting
authorizing the Board to issue the new shares in the Subsequent Offering, (iii)
the trading price of the Company's shares exceeding the subscription price, and
(iv) publication of a prospectus.

The Board has considered the structure of the equity raise in light of the equal
treatment obligations under the Norwegian Public Limited Companies Act, the
Norwegian Securities Trading Act, the rules on equal treatment under Oslo Rule
Book II for companies listed on the Oslo Stock Exchange and the Oslo Stock
Exchange's Guidelines on the rule of equal treatment, and the Board is of the
opinion that the transaction structure is in compliance with these requirements.

The share issuance will be carried out as a private placement in order for the
Company to complete the equity raise in a manner that is efficient, and is
considered to be in the best interest of the Company and its shareholders. The
Subsequent Offering, if implemented, will secure that Eligible Shareholders will
receive the opportunity to subscribe for new shares at the same subscription
price as that applied in the Private Placement.

Carnegie AS acts as manager and bookrunner for the Private Placement and the
Subsequent Offering. Advokatfirmaet Schjødt AS is acting as legal advisor to
Airthings in relation to the Private Placement and the Subsequent Offering.

PRACTICAL ARRANGEMENTS

The 4Q 2022 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/4q-2022-presentation

For questions or interview/meeting requests, please contact:
Øyvind Birkenes - CEO
T: +47 922 43 551
E: o.birkenes@airthings.com

Jeremy Gerst - CFO
T: +47 455 11 103
E: jeremy.gerst@airthings.com


About Airthings
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

More information:
Access the news on Oslo Bors NewsWeb site

581947_Airthings ASA - 4Q22 Results Press Release.pdf
581947_airthings-asa-4Q22-presentation.pdf
581947_airthings-asa-4Qandfullyear22_report.pdf