Good morning, everyone, and welcome to this quarterly presentation of the Q1 results. I'm Emma Tryti, and I've been CEO of Airthings for almost three months now. This being my first quarterly presentation, I would like to grab the opportunity to say thanks for the warm welcome to the Airthings family. I'm truly impressed by our skilled and dedicated team who has built a global leader within the indoor air quality industry. Today we present a solid quarter, and together with my co-pilot, Magnus, our Interim CFO, we will give you the details from the first quarter. You're more than welcome to ask questions, so please send them in the chat. There's about 20 seconds delay, and we will have a Q&A session at the end. Firstly, the highlights. All in all, we deliver a solid quarter with growth in top line, gross profit margin, and ARR from last year. On segment level, I would say the quarter has a twofold outcome where the consumer segment on the one hand delivers all-time high revenues, while the business segment on the other hand sees a decline in revenues due to no major contracts signed in the quarter. The consumer segment delivers the best quarter ever with revenues of $7.8 million, corresponding to an increase of 22% compared to last year. It's driven by strong sales across all sales channels. For the first time, we had positive cash flow from operating activities due to a combination of realized revenue growth, improved gross profit margins, reduced operating costs, and net working capital. This is expected to fluctuate between quarters. A big thing this quarter, although with limited revenue impact, was the launch of Airthings Renew, our first smart air purifier released at CES in Las Vegas in January and launched to the market in March. We sold out initial batches after high market demand, and we have now ramped up production. I'm so happy to see that we are responding to customers' needs as Renew enables our customers to actively clean the air through a seamless user experience in the Airthings ecosystem. Before going into the details of Q1, I want briefly to recap on our long-term growth drivers and the Airthings 3.0 strategy. We are definitely starting to see positive results from implementation of our strategy. We are uniquely positioned to capture growth in a global market, capitalizing on two megatrends: health and energy efficiency. So health tech, that's the main driver in the consumer segment. We spend more than 90% of our time indoors, where the air is up to five times worse than outdoors. 55 million people have asthma in the U.S. and Europe combined. Particle pollution is a major cause of it. A rapid increase in instances of wildfires increases the risk of both cardiovascular and respiratory-related effects. So better health, that's what we sell to consumers. We provide insight that improves air quality, leading to better focus, sleep, and overall health. With almost 400 million residential homes in EU and North America, I guess we could say that the market is large. For the business segment, an important driver is that our products can reduce energy needs in buildings by optimizing the ventilation. So more than 30% of global energy consumption comes from commercial buildings. So there's an enormous potential in reducing energy use here. So all in all, the market is big. Our job is to create the awareness and generate increasing demand for our products and services. And in our strategy, we focus on three pillars to drive profitable growth going forward. And it's about time to change the perception in people's heads around our products from nice-to-have to must-have. Previously, we reached out to innovators, early adopters, often tech-savvy men in their 40s. These days, we are approaching a much wider customer base, including families, women, and also younger audiences. And then it's especially important that we, one, continue to educate millions of people to understand the impact of the air they breathe and increasing the awareness. And secondly, to move towards a more digital go-to-market model. Digital distribution in combination with physical presence enables us to be even more targeted and reach out to even more at a lower cost. And lastly, to create engaging user experiences across software and hardware. We come from hardware. Now, as we are connecting it all, delivering value through the app, it's all about engagement. That is how we stay relevant and build relations with our customers. So as we change the mindset from nice-to-must-have, we also, at the same time, develop a scalable operating model and drive costs down. So this will result in growing revenues, expansion of gross profit margin, OPEX growing less than 1-to-1 with revenue, generating positive and expanding EBITDA margins over time. And as you can see, our strategy is having a positive effect on our value drivers. So measuring on a rolling 12-month basis, revenue is up 6% over past year. The gross profit margin has improved by four percentage points from 58% to 62%. OPEX has been reduced in absolute terms and declined from 91% to 77% as a percentage of revenue. While we're still not profitable, this means that our 3.0 strategy has given us a clearer path to profitability. I'm very confident in the quality of our products, our people, in our position as an innovation leader in the indoor air quality space, and in the long-term drivers for our market. However, we have been and remain in a challenging market with cost-conscious enterprises. As this continues, it can put a damper on sales in the business segment. In such a business environment, we need to stay prudent and focus on what we can control. While we continue to invest in sales, we will maintain a strict cost control. So let's dig into the details now of the Q1 results. We delivered sales revenues in a total of $9.5 million. That's up 9% year-on-year. As I said, on segment level, the quarter has a twofold outcome. In the consumer segment, we sold more products and services per customer, strengthened loyalty, and reduced customer acquisition costs, resulting in the strongest quarter ever. It's driven by underlying growth in sales and increased demand in all channels. In the business segment, there were no large contracts in Q1, resulting in revenues below expectations. Our strategy in the business segment concentrated on increased focus on larger, more strategically important accounts, meaning longer sales cycles and less visibility regarding the timing of the large contracts. That's the nature of it. More on the segment, more on the segment when we come a bit further. So the gross profit margin came in strong at 61%, up five percentage points from the first quarter last year. And then into the consumer segment, it delivers, as I said, record high revenues of $7.8 million. And this segment saw a pretty steady underlying demand across all channels. And this is mainly driven by solid performance with Amazon, boosted by targeted activities during the Radon Awareness Month in January. And in addition, we continued the buildup of our direct channel, and average order value at Airthings.com was up 25% compared to the same period last year. And following a recovery period in 2023, global retail sort of recovered in the first quarter 2024. And our retail partners, such as Home Depot in the U.S., Canadian Tire and Best Buy in Canada, Elkjøp and Clas Ohlson here in Norway, delivered solid growth. The gross profit margin in the consumer segment came in at $4.4 million in the quarter, resulting in a gross profit margin of 57% compared to 49% in Q1 2023. The improvement largely reflected higher price points stemming from lower levels of promotional activities this year, and also a larger share of higher margin sales through Airthings.com. We also saw all-time high device registrations in the segment. This is a metric that we follow closely on a weekly basis as it is a fundament for our future. The more engaged our customers are with our products, the easier it is to stay relevant and build that long-lasting relationship. The increase in device registrations is mainly driven by new accounts, bundle sales, and repeat purchases. I like the steady quarterly trend we see here, with 75% of device registrations being net users and the remaining 25% being customers with repeat purchases. Also worth mentioning, the 8% increase in device registrations compared to last year, that's below standard but also as expected due to heavy inventory push in Q1 last year. Airthings Renew, our first air purifier, launched as a response to the needs of our customers. California was one of our fastest-growing markets last year and represents a significant potential due to increasing presence of wildfires and subsequent focus on home air quality. Renew, our first smart air purifier, was developed in response to customers who want to actively clean the air while having an air purifier working seamlessly in the Airthings ecosystem. The market launch in March, it marked our first entry into the large market for air purifiers. We learn as we go and still have a limited contribution to revenues, but we are glad to enable customers to actually fix the problem. As I said, the revenue contribution of $1.2 million from the business segment was lower than expected. And the reason for this is partly because the market is slow, but more importantly, because we did not sign any large contracts in Q1. The segment is characterized by longer sale cycles, more volatility, and less visibility compared to the consumer segment. At the same time, it represents vast potential due to both increasing energy prices and nation's climate goals, as much as half of the energy consumption from buildings can be reduced by optimizing heating, ventilation, and air conditioning (HVAC). We provide the business segment with relevant, timely, and effective answers to some of the most challenging issues it faces today. Our sales efforts, they increasingly concentrate on large, strategically important accounts. Our pipeline of potential deals, it looks promising. The public school sector in the U.S. is particularly active, and we are already engaged in several pilot projects with various schools. So going forward, in this segment, we need to do two things. Firstly, to increase the baseline, the underlying run rate. Secondly, win a large contract every single quarter. So in Q3 and Q4 last year, we won big contracts with high instant revenue impact. This quarter, we won a request for proposal (RFP) with a global healthcare company to roll out Airthings products and solutions across global offices. This agreement, it represents a significant revenue potential to increase the underlying run rate, the baseline. I'm glad to say that by the end of the first quarter, more than a quarter more than by the end of the first quarter, more than 100 Norwegian municipalities are customers of Airthings. That represents more than a quarter of the municipalities in Norway. And out of those, 20% are actually all-in customers using Airthings products and solutions in all their schools and kindergartens. We saw great growth in devices in the field driven by large contracts from the second half of last year being installed this quarter. And this is also a main driver for the increase in ARR in the business segment. Airthings for Professionals, that's the smallest of the three business segments, offering an easy-to-use, certified radon measurement device with a dashboard solution tailored for home inspectors and radon professionals. In addition to device sales, Airthings also offers calibration services and leasing. This is a stable segment contributing with $400,000-$600,000 in revenue on a quarterly basis. The annual recurring revenue came in at $4.2 million in the first quarter, which is within the guided range. It represented all in all 4% growth year-on-year. The business segment stood for 3.1 out of those $4.2 million, up 19% compared to Q1 last year. And as I said, this is driven by the large installments at large enterprise customers and U.S. school districts. Churn levels have remained negligible over time, supporting the stability of the recurring revenues. And the gross profit margin of the ARR remains above 80%. And then I hand over to Magnus for some more details on the financials. Thank you, Emma. As Emma mentioned, we recognized the revenues of $9.5 million for the first quarter, which is up 9% year-on-year. Gross margin for the quarter was 61%, which represents an improvement from the first quarter last year of five percentage points. This is driven by improved margins in the consumer segment, largely reflected higher price points stemming from lower levels of promotional activities compared to Q1 2023. We saw an EBITDA loss of $1.8 million for the first quarter, resulting in an EBITDA margin of -19% compared to -37% the same quarter last year, reflecting a reduction in payroll expenses of $500,000 and flat other operating expenses. This despite significant inflation pressures on prices and salaries. In terms of EBIT, it came in at -$2.2 million for the quarter. This represents both amortization of right-of-use assets as well as amortization of internally generated intangible assets. The reported net loss for the first quarter was $800,000. Turning to the inventory situation, in the first quarter, we saw a decline of $1.2 million in overall inventories from the fourth quarter, which represents a reduction of 26 days from 386 to 360 days. This reflects the active steps we have taken to reduce inbound supply. In addition, approximately 40% of our inventory are components, which were secured through non-changeable orders in 2021 and 2022 and delivered during 2023 and early 2024. We are now reaching the end of these orders. A contributor to reduction in days of inventory going forward will be that we utilize these components in production of finished goods sold this year while not receiving more components into stock. With this and the continued focus on controlling inbound supply, we aim to be at less than 250 days at year-end. So moving to the balance sheet and looking first at significant changes to assets, the deferred tax asset has increased due to the losses the last 12 months. As discussed in the previous slide, inventories are down $3 million. Trade receivables are down $1 million. This despite higher revenues this quarter compared to the first quarter in 2023. I will cover cash in more detail on the next slide. In terms of liabilities, the increase in non-current interest-bearing liabilities reflects the loan we received from Innovation Norway in 2023. Trade payables and other current liabilities are slightly up compared to the last year. That's mainly due to increased subscription sales, which will be recognized as revenue over time. Looking at the cash flow statement for this quarter, we reported a cash balance of $13.2 million, down $1.4 million from year-end 2023. This is mainly driven by a slightly positive cash flow from operating activities of $100,000 due to negative EBIT offset by positive changes in the net working capital. In terms of cash flow from investment activities, this was negative $258,000, mostly related to R&D and internally generated intangible assets offset by interest received on over-cash balance. Cash flow from financing activities was a modest -$254,000 with a negative net foreign exchange difference of $923,000. With that, I leave the word back to Emma for a summary and outlook. Thank you, Magnus. To sum it up, we deliver a solid quarter with twofold outcome on segment level. Record high consumer quarter corresponding to a 22% increase year-over-year, mainly driven by solid performance with Amazon and increasing traction on Airthings.com. The business segment were lower than expected revenue contribution in the quarter. First quarter with positive operating cash flow driven by trade receivables and reduced inventory. Airthings Renew was launched with solid market reception, strong pre-orders, and good reviews and awareness across all our markets. Revenue growth, gross margin expansion, and increasing operational leverage from our 3.0 strategy. We are now well into the second quarter, which marks the start of the wildfire season and peak pollen season. We recently released a new pollen feature in the app and are continuously working on improving customer experience. More will follow. Our guidance for the second quarter this year is revenue within the range of $8 million-$10 million and annual recurring revenue within the range of $4.3 million-$4.5 million. Thank you so much, everyone. And now I'm curious to hear whether we have any questions. Yes, we have one question from Markus Heiberg in SEB. Can you elaborate on the decline in consumer gross margin from Q4? Yeah, from Q4 2023. I assume it's 2023. It doesn't say in the question. Yeah, yeah. Yeah, usually we compare from one quarter to one quarter because of the seasonality. But the main reason for that decline is a slightly different product mix in sales in Q4 last year. Here we are in the camera. I'm looking at you who are asking the question. One question, one more question also from Markus Heiberg, SEB. What drives consumer revenue growth ahead of device registration? Is it due to higher ASP in your D2C channel, or are you selling more into the channel? Are you seeing more normal inventory levels? Yeah, I can start commenting on the first part of the question on the first part of the question. So in a world where all our devices would be connected devices and also in a world where everyone who buys a device starts out by registering the device straight away, that will be a one-to-one correlation on that. But we still sell quite a bit of the devices that are not connected. And we also see for some customers that it takes some time before the devices actually are connected and registered in our app. So that's the reason for the deviation. And then maybe you will comment on the inventory level. Yes, I can comment on the inventory levels. These have been a key focus area for Airthings for a year now. As I mentioned in the presentation, the components will be utilized in the production of finished goods sold this year, which will drive down the inventory levels. We aim to reach 250 days by year-end. We have a question from Kenneth Ervik. What are the expected sales of the air purifiers in Q2? The air purifier, as we said, will launch it to the market in March. We had strong pre-orders. As I also said in the presentation, we learn as we go. The reception has actually been above expectations. We haven't guided on the numbers of number of devices sold or the revenue contribution from it. It will still be a limited revenue contribution in Q2. No more questions. Thank you, everyone, for listening.
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