Continued strong consumer growth in the third quarter

24 Oct 2024 07:00 CEST

(Oslo, Norway – October 24th, 2024) — Airthings (AIRX), a global leader in
indoor air quality monitoring solutions, reported revenues of USD 10.0 million
in the third quarter of 2024, on par with the same quarter last year. As in
previous quarters, Airthings experienced strong growth and customer loyalty in
the Consumer segment. While sales in the Business segment continued to lag due
to challenging market conditions and order postponements, Airthings signed
several medium-sized deals signed in the quarter.

“I am pleased to report that we completed our announced restructuring and
reorganization during the quarter, ensuring that we are well positioned to meet
the continued strong underlying demand for our leading indoor air quality
solutions. Our workforce has been reduced by 20 percent, and we have established
a leaner organization and operating model. In line with our updated strategy, we
will prioritize segments and solutions that are suitable to accelerate our path
towards profitability and long-term value creation,” says CEO Emma Tryti.

Revenues in the Consumer segment amounted to USD 7.7 million, corresponding to a
revenue growth of 21 percent in the quarter. Safety concerns contributed to
increased awareness around indoor air quality, driving demand for Airthings’
easy-to-use radon devices. Gross profit in the Consumer segment came in at USD
4.2 million in Q3 24, with a gross margin of 54 percent, down 5 percentage
points from Q3 23, impacted negatively by channel mix, with a larger share of
sales coming from retail where margins were under pressure.

Revenues from the Business segment amounted to USD 1.8 million in Q3 24, down 42
percent year-on-year. The difference was mainly related to one large global
enterprise customer deal in the same period last year. Repeat purchases from
existing customers, both schools and large businesses, confirmed a high degree
of customer satisfaction. Stable annual recurring revenues supported a healthy
gross margin of 72 percent in the quarter.

Gross profit for the third quarter was USD 5.8 million, showing a gross margin
decline of 3 percentage points compared to the third quarter last year. The
decline was caused both by a larger share of total revenues coming from consumer
sales, and by the channel mix within the Consumer segment.

“In line with our updated strategy, we are implementing a more data-driven
approach to ensure an optimized supply chain and channel mix going forward.
Balancing volumes and margins in retail sales will be important to ensure a good
combination of distribution and profitable growth,” says CEO Emma Tryti.

Airthings expects the gross margin to be volatile from quarter to quarter,
impacted by product and channel mix in the Consumer segment, and the timing of
larger deals in the Business segment. For the fourth quarter of 2024, Airthings
guides for revenues within the range of USD 9.5 - 12.0 million, with Annual
recurring revenues (ARR) of USD 4.3 - 4.5 million expected at the end of the
quarter.

In Q4 24, revenues may be negatively impacted by up to USD 1.2 million.
Airthings has been approached regarding a possible buyback of inventory due to
defective batteries in a product. The particular batteries are limited to one
product and one batch of batteries delivered in 2022. Internal assessments of
the issue and discussions with the customer regarding a resolution are ongoing.
The maximum revenue effect is expected to be USD 1.2 million but can be lower.
Airthings expects to conclude in Q4 24. Accurate revenue and EBITDA-effects will
be reflected in the Q4 24 report.

“Although the EBITDA in Q3 is impacted by the expected one-off restructuring
costs, we reiterate our target to become EBITDA positive in the second half of
2025. We also expect that our current operating plans remain fully funded until
we reach break even," Tryti says.

The interim report and presentation are attached to this release and available
on www.airthings.com/investors.

Practical arrangements:
The results for Q3 2024 will be presented by CEO Emma Tryti and interim CFO
Magnus Bekkelund today at 08:00 (CET) at Danske Bank’s offices, Aker Brygge,
Oslo. The presentation is open to the public and can also be followed via the
following link:

https://events.webcast.no/airthings/presentations/3q-2024-presentation

For additional information or media requests, please contact:
Emma Tryti, CEO
+47 473 76 431
emma.tryti@airthings.com

Magnus Bekkelund, interim CFO
+47 480 78 845
magnus.bekkelund@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 125
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

630248_Airthings_ASA_Q324_Press Release.pdf
630248_Airthings_ASA_Q324_Presentation.pdf
630248_Airthings_ASA_Q324_Report.pdf