Earnings Release • Sep 6, 2024
Earnings Release
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SEPTEMBER 2024
Capital Markets Board Bulletin No. 2023/81 datedDecember 28,2023, announced that issuers and capital market institutions are required to prepare theirannual financial statements for the fiscal periods ending on or after December 31, 2023, in accordance with the provisions of IAS 29 inflation accounting.
Accordingly, this presentation regarding the 2024 second quarter financialresults contain the Company's audited financial information prepared according to Turkish Accounting/Financial Reporting Standards by application of IAS29 inflation accounting provisions.
In addition to this information, given that the guidance information and the 2024 Q2 interim financialresults announced so far were presented without the application of inflation accounting, in order to enable investors and analysts to conduct a fullfledged analysis, supplementary historical information for selected key performance indicators used in prior periods' investor
presentations were provided.Such supplementary information is made available for this period, and contains unaudited financial information prepared for management reporting purposes.
The information and opinions contained in this document have been prepared for the purpose of providing a consistent and comparable evaluation of our financial performance, under the responsibility of our Company's Board of Directors and managers responsible for financial reporting.
This presentation may contain forwardlooking statements reflecting the current views, expectations, assumptions, and forecasts of the Company's management regarding certain future events, using words such as "may," "will,""expect," "believe," "plan," and "anticipate." While the Company believes that the expectations reflected in these forward-looking statements are reasonable under current circumstances, actualresults may differ depending on developments and events affecting the
variables and assumptions underlying future expectations and estimated figures.
The Company, its shareholders, members of the board of directors, managers, employees, or any other person cannot be held responsible for any damages that may arise from the use of the contents of this presentation.
| Leading Provider of cybersecurity solutions for Identity and Access Management and Data Security with 17+ years of experience |
250+ Customers globally in 32 countries |
|---|---|
| Continuous R&D Investment with expert staff in 3 R&D centers |
Highly recognized by Gartner, analyst firms like KuppingerCole, Forrester and Omdia as |
Forrester and Omdia as a leader in PAM domain
158 Employees globally
of revenue from
International Markets
40%
in 1H2024
in Turkey
Offices & Sales Teams Istanbul Ankara Izmir USA
Pakistan
UAE*
Indonesia*
7x24 Global Operation Capability
3 R&D Centers
*Newly established in 1H 2024
Revenues flat in TL post IAS29, +12.3% in USD
Robust balance sheet and cash position for future growth
Presence established in Middle East and Indonesia
1st ranking in Bilisim500 for Data Security Software
*Based on pre IAS revenues divided by average exchange rate in the respective periods
The decline in EBITDA was due to higher opex, particularly due to lower FX gains from operations as a result of higher depreciation of TL in 1H2023 compared to 1H2024
| (in TL m) | 1H2023 | 1H2024 | Year-over-year |
|---|---|---|---|
| General Administrative Expenses (-) | (19.7) | (24.0) | 4.3m higher |
| Marketing Expenses (-) |
(59.7) | (47.0) | 12.7m lower |
| R&D Expenses (-) |
(40.7) | (52.8) | 12.1m higher |
| Other Income from Main Oerations |
40.1 | 25.0 | 15.1m lower |
Our Net Profit in 1H2024 was down by 20.7 million TL compared to previous year, largely attributed to the lower EBITDA and an increase in Net Monetary Losses
Net Cash Position (TL m)
| Net Cash Position |
31 December 2023 | 30 June 2024 |
|---|---|---|
| Cash and Cash Equivalents |
+66.0 | +58.7 |
| Financial Investments |
+9.5 | +56.7 |
| Bank Debt |
-41.4 | -20.5 |
Debt and cash currencybreakdown (30 June 2024)
26%
Invoiced Revenues(*) (TL m)
Our invoicedrevenues Subscription (*) demonstrated robust growth, with an increase of 85%
Main driver for growth was strong performance of our business in Turkey
Our subscription revenues increased to 17.5% of total invoiced revenues in 1H2024, a notable increase from 10.2% in 1H2023, highlighting the success of our recurring revenue strategy
(*)Invoiced revenues are revenues that have been invoiced within the relevant reporting period but are recognized in the income statement in the same reporting period or in subsequent reporting periods, according to IFRS rules. Figures do not include the effect of IAS 29.
Kron ranked first for the fourth consecutive time in the Bilişim500 for Data Security Software. CEO Mete Sansal stated, "This achievement reflects our years of dedicated efforts and the consistent execution of our strategies. The award serves as a testament to the quality and reliability of the solutions we provide. As a proud local and national brand, we are honored to represent our country at the highest level on both national and international stages."
Kron's Telemetry Pipeline earned a silver prize in the Data Analytics and Artificial Intelligence category, recognized at the Export Accelerators Competition held during the Mobilefest Technology Fair and Conference.
Kron has partnered with İşNet, a leading IT provider in Turkey, to offer privileged account access security asa-service, enhancing cybersecurity for İşNet's cloud-based customers.
Kron was a Gold Sponsor at GlassHouse's Customer Experience Day '24, where Ayşe Yenel, Chairperson of the Executive Board, highlighted the importance of digitalization and innovation for enhanced efficiency.
Kron strengthened regional relationships by organizing a summit with Naizak Distribution, engaging over 50 partners in MEA region to discuss Kron's product offerings and strategic goals.
Kron showcased its solutions at GISEC Global, one of the largest information security platforms, creating new opportunities with regional distributors, partners, and customers.
As the only technology manufacturer from Turkey, Kron participated in this prominent event in the U.S., demonstrating its advanced Identity and Access Management and Data Security solutions.
Kron actively participated in the Gartner Security and Risk Management Summit in Dubai, engaging in strategic discussions for regional investments and launching new projects with distributors and partners.
| Revenue Growth (before IAS 29) |
65-70% |
|---|---|
| EBITDA Margin (before IAS 29) |
40-45% |
| TL | 1H 2023 (IAS 29) |
1H 2024 (IAS 29) |
Change % |
|---|---|---|---|
| Net Sales |
152,612,037 | 152,660,394 | 0% |
| Cost of Sales |
-21,642,987 | -23,363,492 | 8% |
| Gross Profit |
130,969,050 | 129,296,902 | -1% |
| Gross Profit Margin |
86% | 85% | |
| Operating Expenses |
-91,437,147 | -109,758,464 | 20% |
| G&A Expenses | -19,740.042 | -23,954,770 | 21% |
| Marketing Expenses | -59,735.265 | -47,036,911 | -21% |
| R&D Expenses | -40,719.270 | -52,873,732 | 30% |
| Other Operating Income/Expense, Net | 28,757.330 | 14,106,949 | -51% |
| Operating Profit |
39,531,903 | 19,538,438 | -51% |
| Amortisation | 22,401,910 | 29,362,249 | 31% |
| EBITDA | 61,933,813 | 48,900,687 | -21% |
| EBITDA Margin |
41% | 32% | |
| Financial Expenses, Net |
-7,777,039 | 790,421 | -110% |
| Monetary Gain /(Loss) |
-22,024,338 | -32,657,145 | 48% |
| Profit Before Taxes |
11,047,801 | -10,977,876 | -199% |
| Tax Income /(Expense) |
-1,838,760 | -568,179 | -69% |
| Profit /(Loss) |
9,209,041 | -11,546,055 | -225% |
| Profit Margin |
6% | N/A |
| TL | 31 Dec 2023 (IAS 29) |
30 Jun 2024 (IAS 29) |
Change % |
|---|---|---|---|
| Cash and Cash Equivalents |
66,010,336 | 58,757,050 | -11% |
| Financial Investments |
11,154,886 | 58,247,242 | 422% |
| Trade Receivables |
245,688,928 | 128,767,654 | -48% |
| Inventory | 2,316,991 | 1,704,416 | -26% |
| Tangible Assets |
6,971,797 | 9,373,640 | 34% |
| Intangible Assets |
230,123,832 | 248,314,444 | 8% |
| Deferred Tax Assets |
2,103,146 | 1,937,726 | -8% |
| Total Assets |
619,430,129 | 563,536,242 | -9% |
| Short-Term Financial Liabilities |
146,330,882 | 120,855,124 | -17% |
| Trade Payables |
5,409,195 | 6,514,351 | 20% |
| Total Liabilities |
229,410,728 | 198,985,138 | -13% |
| Equity | 390,019,401 | 364,551,104 | -7% |
| Total Equity + Liabilities |
619,430,129 | 563,536,242 | -9% |
BIST: KRONT | krontech.com | [email protected]
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