Hello, welcome to the second quarter presentation. I'm Øyvind. With me today, I have Erik Lundby, our CFO, and also our leader of Airthings for Business, Pål Berntsen. I would ask you to please send any questions in the chat. There is about 20 seconds delay from you send the questions till we see it would be good that we have questions ready as we get to the end. At Airthings, we are still super focused on our overall purpose, which is to empower the world to breathe better. What we do at Airthings should be good for people, good for the planet, and good for business. We have high revenue growth. Had that for many years, with 64% CAGR growth since 2015. Our guiding range for 2021 remains with a midpoint of NOK 330 million in revenues, as we also presented in the last quarter. More share of our revenues are now coming towards Americas after the second quarter. Year-to-date, we are at 68% for the Americas, and 32% from Europe and rest of the world. We have added some more key retailers for Airthings for the consumer segment, like CVS, which I'll show more about, and we also see more activities coming from Walmart and other key retailers like The Home Depot and others. For Airthings for Business, we have added Carrier now as a key new partner for Airthings for Business. Pål will talk more about it later in the presentation, but this is certainly a major milestone for the company. We have also added Sigler, which we are working with for some very exciting opportunities in California, which is a new partner we have over there. Brand awareness and awareness about air quality is driven through media partners, digital marketing and social media, and there is a lot of activities happening, and we really see this is increasing every quarter. Airthings has years of experience with developing award-winning products. Building on this success, the release of View Plus, which is now shipping to customers both for consumers and Airthings for Business customers. It's really strengthening our position as the number one air quality producer in the world. This is where we are, this is where we're going to stay over the coming years. Looking at our second quarter results, the revenue is up 80% to NOK 68 million. Our annual recurring revenues is up 178% year-over-year to NOK 16.5 million. We have a very strong gross profit margin of more than 67%. We have a very strong outlook also for the third quarter, with a mid-range growth of more than 100% year-over-year. We have a range now of NOK 80 million-NOK 90 million. This range is actually limited by supply of components, and we could have done, we believe, more than NOK 100 million in revenues in third quarter, if we had unlimited supply of components. The guidance window for our annual recurring revenues is NOK 18 million-NOK 23 million for the third quarter. Some of the highlights that we've seen during the second quarter certainly the 80% revenue growth of our sales revenue, and 284% year-over-year growth for Airthings for Business. That we are delivering according to what we have said about gross profit margins. Now it's over 67% for the second quarter and 65% year to date. It's very strong. View Plus, as we talked about during the first quarter, has now been shipping in June, to both consumers and to Airthings for Business customers. We still have a large backlog, and we are currently limited by component supply for actually delivering even more of this. We have thousands and thousands more of this product coming in from our factory over the coming weeks. A very important feature for Airthings for Business is the public dashboard. This is important for WELL certifications that many of our customers and partners are working towards, as well as for office environments in general. We have signed a strategic agreement with Carrier Corporation, and Pål will share more details about that shortly. We are rolling now out to CVS pharmacies across United States, to more than 3,000 stores. This really shows the strength we have and the leadership we have in this space. The lowlights for the quarter is that we have some delays on the technology rollout of Airtight, and we see now about a six-month delay. However, the solution we're building now is really great, and it's going to be very exciting to see over the coming quarters as we roll this technology out to many buildings around the world. We still are challenged by a shortage in the semiconductor market. It hits our gross profit margin for the third quarter with about 3 percentage points, and it's also limiting our supply and revenue growth for the third quarter. We are doing what we can to secure supply. I'll give an update by the segment. I'll start with the consumer segment, then Pål will come and talk a bit about the Airthings for Business and Carrier. I'll come back and talk about the Pro segment. We have strong performance from our consumer segment, with 69% growth to almost 50 million NOK in the second quarter. Also a strong gross profit margin in this segment with 66.7%, driven by the product mix and channel mix during the quarter. We're getting very positive and very good feedback from consumers that have received their View Plus. Many of them have been waiting for a while as we started pre-orders already in March. Very good feedback using this product. We're going to see tremendous growth, driven by this product moving forward. We are started to build up sales channels in the Asia- Pacific. We're going to see more of this moving forward. There's some exciting projects going on over there. CVS is the largest pharmacy retail channel in the U.S. They have more than 10,000 locations. We are rolling now out Wave Mini in more than 3,000 of their locations. This is a major rollout. We really drive brand awareness and awareness about air quality, and really drive Airthings as a brand moving forward. CVS is focused on air quality for consumers to take preventive actions to avoid asthma and allergies. Airthings really fits into their program. Partnering with a retailer like CVS really shows that Airthings is the leader in the air quality monitoring space. I'll give the word over to Pål, and he will give an update on Airthings for Business. Thank you, Øyvind. Airthings for Business did a very strong quarter in Q2, with 284% growth totaling up to NOK 9.7 million in revenues. We also started to ship the View Plus in Q2, this is going to give us great opportunities moving forward. We signed a partner contract with Carrier. I'm going to come back to that a bit later. A big focus for us is to work with partners; in Q2 we did 75% of our revenue through partners. Why do we want to work with partners? Well, they can help us scale to levels that we cannot do on our own. Let me give you one example. We have a partner in U.K. In Q4 last year, they had 90 devices out with their customers, so Airthings devices. In Q1 this year, they had 180 devices installed with their customers. Now in Q2, they have a total of 1,800 devices out with their customers. This shows that we can scale together with our partners to levels that we cannot do on our own. The partners which are driving the biggest growth for us in Q2 is Schneider Electric, Infogrid, IoT City Business, and Evotech. In the countries where we're seeing the biggest growth figures is in the U.K., Netherlands, Singapore, Italy, and U.S. We're transforming our business to work more with partners and less direct. The latest partner agreement that we sign is with Carrier. Carrier is a leading and global provider within HVAC and fire and safety business. They got more than 53,000 employees operating in more than 180 countries. This has been a very long process, and we finally have signed the agreement. We're going to start working with Abound, their building optimization branch. Edwards, which is their fire and safety branch. The initial rollout is going to be in U.S. and Canada, with Europe is coming as second phase. We already started to train their sales staff, which is spread across 500 sales offices in the U.S. Throughout this process, we've also done a few pilot installations in office spaces, in schools, and also in a professional sports stadium. Through the last year, we've done a lot of work on a partner portal in the Airthings Dashboard, and we've done that work together with our partners. Now Carrier, with other partners, can now easily do large installments, manage unlimited customers, and share access with all of their sales teams. When becoming a supplier with Carrier or other large corporations, I would like to emphasize one thing. That getting their stamp of approval and signature on a contract, that shows that we, as Airthings, have overcome their testing and qualification needs. They are now ready to represent Airthings towards their customers. These stamp of approvals from our partners gives the solution the credibility and the trust from our partners, which for sure is going to help us scale and hit our long-term goals. Over to you, Øyvind. Thank you, Pål. From Airthings for Business, we go over to the professional segment, the Pro segment. We have continued growth also here with 45% year-over-year growth to NOK 8.5 million, and at a gross profit margin at almost 75%. The home inspector market has been challenging in the second quarter, as many home buyers are waiving the home inspection to secure a fast purchase, as the housing market is so hot. However, we are growing our market share in this space and in the home inspector market, and will continue to do so. We expect continued high growth over the coming quarters. When it comes to the annual recurring revenue, we had a solid growth of 178% year-over-year and more than 300% growth year-over-year for the ARR coming from Airthings for Business segment. Rolling out the Airtight technology has taken longer than we first anticipated. We have invested now more R&D to get the solution fully integrated with the Airthings Dashboard and our cloud solution. However, the solution we'll see now is going to be really excellent, and it's rolling out to beta customers these days. The go-to-market strategy is updating as well. We'll focus more on specialized partners that will own their end customers. What we have learned so far is that there's too much work for us per building, with many parties involved, to scale up to sell this directly. We now have got some really great partners in the Nordics and U.K. lined up that will take this technology to the next level, and they will own their own customers and implement this technology around the world. This technology is so important, and it's going to create huge energy savings in buildings around the world. We will talk more about this also in the Capital Markets Day following the third quarter updates. When it comes to the ARR, we have reduced our guiding range for the year by NOK 5 million. The new window is from NOK 27 million-NOK 35 million for the year. Our long-term targets has not changed at all. This is just a short-term delay. We also see continued very strong gross profit margin from our annual recurring revenues, and the service revenue has much higher than 80% gross profits. I'll send it over to Erik Lundby to go through some more details about the financials. Thank you, Øyvind. Starting the financials with a run-through of the P&L. As Øyvind mentioned, we had a revenue of NOK 68 million for the quarter. About NOK 240,000 of the total revenue is linked to an Innovation Norway project, which is now completed. We ended at total revenue of NOK 68.2 million for the quarter. We had a sales gross margin of 67.1%, which is up 1.2 percentage points year-over-year and 5.5 percentage points quarter-over-quarter. If we break that down a bit, we see that the postponed Amazon order that we mentioned during our first quarter presentation, we recouped that in the second quarter, and that had a positive effect on the gross margins. In addition, we have a higher share of the high- margin service revenue that Øyvind mentioned. That revenue has more than or higher than 80% gross margin, which has a positive effect, obviously, on the group margin as a whole. If we're looking further down on the P&L at the OpEx, the cost grew by 80% year-over-year. That's driven by the increased personnel cost, which is according to our expansion plan. In addition, we ran some campaigns during the quarter. We have increased our office space, both here in Oslo as well as establishing in the U.S. That drove cost up a bit. Cost related to the View Plus launch, R&D, marketing, et cetera, also grew the cost in the quarter. We have some higher depreciation costs, which will remain higher than earlier as a result of the Airtight acquisition, where we have goodwill and R&D higher than what we had last year at the same time. If we go to the balance sheet, I will highlight a few things. One thing, obviously, is that we have restated our earlier figures. That's because of the purchase price allocation that we completed during the quarter, where we reallocated some of the purchase price of the Airtight acquisition from goodwill to the R&D on the balance sheet. We have increased our inventory during the quarter, that's mainly due to growing as a company, obviously, but also because of the pressed semiconductor market increasing prices. We forecast longer ahead, securing components so that we have supply for our customers. We also closed a significant amount of deals in June, which resulted in higher accounts receivable. The change in total liabilities is driven by the reduction in long-term provisions, which is linked to the employee share program. The deferred tax liability came in as a result of the purchase price allocation that we completed during the quarter. The last element I would like to highlight on the balance sheet is the current liabilities, which is made up of pre-orders for the View Plus, as well as the subscription revenue that we accrue over time. Moving over to the cash flow, I would like to highlight the two main elements, and one is the negative operating profit, which we've gone through a bit before, of NOK 19.4 million. In addition, we had a working capital increase, where the inventory and accounts receivable has increased. Cash flow from investing activities, as well as financing activities are marginal during the quarter, as we haven't had any major CapEx or financing. If we move back to Øyvind with some closing remarks and summary. Thank you, Erik. I'll go through a bit of a summary and outlook. During the first half now of 2021, we have done many major milestones. One of them is certainly releasing the View Plus. It's certainly the world's most advanced air quality monitoring, and we started to ship it in two different versions, one for consumers, one for Airthings for Business. We have a very strong backlog. Backlog is increasing rapidly, and this product will drive growth certainly in the second half. We have done some major rollouts to Walmart stores and to CVS pharmacies during the first half. We're working very closely with other partners like Home Depot, and we will see a significant increased footprint in the U.S. market moving forward. We have signed some major agreements with global leaders like Schneider Electric and Carrier Corporation, which really shows our strong position in the market and will also fuel future growth. We have expanded into Asia- Pacific, and we are seeing some interesting project there that will drive growth moving forward. We see that Airthings brand is getting more and more recognizable, and we are recognized as a global leader within air quality, and we see great uptake in awareness both in U.S., Canada, and Europe. Despite a strong second quarter, we see a very strong outlook for the third quarter, where we guide a midpoint of more than 101% in growth year-over-year. This growth is limited by supply, and we believe we can do more than NOK 100 million in third quarter if we had unlimited supply of components. We are doing everything we can to secure the production, as this is certainly a risk for the company. ARR guidance window for 2021 is reduced by NOK 5 million, as service revenue from the Airtight technology is delayed. This technology looks to be really, really good and very solid in the new way we are presenting this to our customers now. This is going to drive a lot of growth moving forward, but we had to spend some more time on it to make sure it's rock solid. The EBITDA margin will improve in 2021 versus 2020 in percent, and this is part of our scale-up moving forward. We are investing a lot in growth, but still we're going to improve our EBITDA margin in percent moving forward. We are on schedule to reach our 2024 goals, which is NOK 1 billion in revenues and more than NOK 200 million of service revenues by 2024. For the third quarter, the revenue guidance window is NOK 80 million-NOK 90 million and ARR from NOK 18 million-NOK 23 million. For the year, we keep the revenue window of NOK 315 million-NOK 345 million, and now the ARR window is from NOK 27 million-NOK 35 million. We'll have our third quarter update on October 28th, and we will follow that by a Capital Markets Day. We'll invite you all for that, and we'll come back with more details. During this Capital Markets Day, we'll update on results and the growth strategy by the segments. Some other updates. Audhild Randa has resigned from Airthings' board, as she's starting as our Chief Operating Officer from August 2nd, next week, and a new board member will be recruited. We also have a board resolution as of July 28th, 2021, that Airthings will apply to move from Euronext Growth to the Oslo Stock Exchange main list during the first half of 2022. I want to say thank you to Erik, our CFO. This is his last update. Erik came to Airthings through the Airtight acquisition, and he has done a tremendous job. Thank you. He got us through the IPO, and I wish Erik all the best moving forward. We will certainly keep close in contact. We have received many strong candidates to the CFO position, but it's still open to apply if you know any good candidates. Then I will introduce you to our interim CFO, Magnus Bekkelund. He's currently our group controller and will now be acting CFO until we have a new CFO in place. We'll open up for any questions and remind you that there's a bit of delay from you enter the questions until we see them here. Do we have any questions? Yes. First question from the online audience. "How dependent is your Q4 expectations on the component supply issue normalizing? Yes, both for Q3 and Q4, we are struggling with the component situation as most other companies in this electronic industry is. However, we have secured supply a long time in advance. The problem is when some of the semiconductor companies are pushing out their dates. We have very good relations and working very closely with our suppliers. We see some of a hit now in the third quarter. We believe, and the way we see it, is that this is not going to be a major problem for us in the fourth quarter. Thank you. Another question from the online audience: "You mentioned that you are presenting Airtight to customers in a different way than before. Can you elaborate a bit on the changes made and why it will drive more traction in terms of revenue? Yes. There's several aspects there. First of all, we have done a full integration of this technology into the Airthings Cloud and Dashboard. During that, we have found, and during talking to many of the customers, we have found a lot of new features that will enable people to save more energy and to also see how this technology work in real time. The solution that we're building now is much better than we anticipated when we started this journey with Airtight. We are getting a very solid, very interesting technology that we now are having at beta customers, getting very good feedback. When it comes to moving forward, instead of us selling this directly and having to go and work with many different players at each building to make sure this technology is fully integrated, we work with partners that already have that type of relations with their customers. They see a huge opportunity to save more energy, and make the building smarter using this type of technology, both using the traditional Airthings sensors, but also the Airtight technology. That's why we are focusing now more on specialized partners to do this, which can scale this much faster and broader than we could do on our own. Thank you. When will CVS start selling Wave Mini, and when will Carrier start reselling for Airthings? CVS is to be in all the stores by end of July. More than 3,000 stores should be fully up and running by end of July. When it comes to Carrier, they have already started to order, but it's still early days, and I think we'll see a lot more activity through Carrier over the coming months. Do you see the effect of the Carrier agreement play out on potential other partner agreements? I think it's a stamp of approval in the market. When we work with players and have strategic agreements with partners like Schneider Electric and Carrier, it makes it easier for us to win. It makes it easier for us to also grow with other partners.
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