Airthings — Investor Presentation 2024

Feb 6, 2025

Airthings Q4 2024 results

6 February 2025 Emma Tryti, CEO Helge Øien, CFO

Q4 highlights

Record-high revenues in the Consumer segment with

quarterly revenues of USD 7.9 million, up 12% YoY and growing 25% adjusted for a one-time item.

Shipped 320,000+ consumer devices in 2024 (+40%),

supported by continued strong demand in US and Canada.

Reduced inventory levels

and positive cash flow from operations.

Margin weakness in Q4 with gross profit impacted by oneoff items, inventory impairment and channel mix.

Q4 highlights continued

6.5 4.6 63% Q4 23 Q1 24 Q2 24 Q3 24 45% Q4 24 -29%

Gross profit margin Sales gross profit

Q4 revenues

USD 10.3M

Stable YoY despite a negative effect of USD 0.9 million from buyback of inventory and decline in the Business segment.

Q4 gross profit USD 4.6M

Down 29% from USD 6.5 million in Q4 23. Gross margin impacted by a one-off item, inventory impairment and channel mix.

Q4 total ARR USD 4.4M

Up 6% YoY, supported by positive development in Pro segment.

Rising awareness of radon risk boosts demand for indoor air monitors

Continued strong growth in the Consumer segment

Consumer revenue growth

YoY underlying* Consumer revenue

40%

growth in shipments in 2024

Getting Airthings products into the hands of our customers

Demonstrating innovation and meeting demand with new products

Launched Corentium Home 2 New software features in pipeline

• Easier to read & understand
• Interactive display
• Additional sensors

Agreement with Target Corp. strengthens retail distribution and growth

• Agreement signed in Q1 2025 and sales starting in Q2
• Cover select US stores and target.com
• Target to sell our hero products, including Corentium Home 2

Agreement with Target Increasing our US footprint and distribution of products

Balancing growth and profitability

Capitalization on growing demand ¹

2 Disciplined execution

Innovation and market positioning ³

• Convert rising awareness to increased sales on airthings.com
• Enhance campaign steering & unit economics, responding to the increased demand
• Balance stock availability with working capital optimization
• In the Business segment, continue to focus on large enterprises and schools, which represent the highest ROI
• Launch new products to match consumer demand; first out is our next generation radon detector

Financials

Continued strong growth in the Consumer segment

High activity level and demand

• More than 100,000 devices shipped in Q4 24 and above 320,00 in 2024 (+40% YoY)
• High demand for easy-to-use radon measurement devices
• Canadian market driving majority of growth, supported by governmental awareness campaigns.

Gross margin declining to 45% adjusted for one-offs

• Buyback of inventory and inventory write-down impacting Consumer gross profit USD 1.1m
• Sales mix and campaigns related to pre-planned high velocity events reduced margin

Consumer revenues and gross margin (USD M)

Gradually rebuilding momentum in Business

• Consistent improvement during the year reorders from several Fortune 100 companies
• Amazon announced deployment of 30,000 IAQ sensors
• 31% decline YoY as Q4 23 included USD 1.4m in revenue from one large deal
• Increased awareness around IAQ monitoring due to wildfires in California.
• Gross profit includes USD 0.1m effect from inventory write-down (underlying gross margin stable at 73%)

Business revenues and gross margin (USD M)

Q4 results

Steady growth in recurring revenues

• ARR from the Business segment +6% to USD 3.3 million
• Driven by large installations at major enterprise customer
• Steady development in Pro

Q4 summary

Q4 results impacted by one-offs

USD -0.9 m from buyback of inventory

Inventory write-down USD 0.3m

Impairment of goodwill (Business) USD 2.6m

Re-evaluation of deferred tax asset results in increased tax expense of USD 6.6m

Financials

Stable revenues and lower gross margin in 2024

Income statement

(USD m)	Q4 2024	Q4 2023	2024	2023
Total revenues	10.29	10.30	38.50	36.59
Cost of goods sold	5.68	3.76	16.84	14.30
Gross profit	4.61	6.54	21.65	22.29
Gross margin	45%	63%	56%	61%
Employee benefit expenses	3.65	3.91	14.68	15.09
Other operating expenses	5.18	3.59	16.04	14.03
EBITDA	-4.22	-0.97	-9.06	-6.83
Depreciation and amortization	0.54	0.36	2.02	1.52
Impairment	2.64	0.00	2.64	0.00
Operating profit / EBIT	-7.40	-1.33	-13.72	-8.35
Financial income / (expenses)	0.89	-0.72	1.70	0.32
Profit (loss) before tax	-6.51	-2.05	-12.02	-8.03
Income tax expense	6.57	-0.53	5.67	-1.77
Net profit (loss)	-13.08	-1.52	-17.69	-6.26
Earnings per share (USD)
Basic earnings per share	-0.07	-0.01	-0.09	-0.03
Diluted earnings per share	-0.07	-0.01	-0.09	-0.03

Gross margin drop due to one-offs and Consumer segment sales mix

Income statement

Segment data (USDm)	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24
Consumer
Total revenues	7.00	7.79	6.81	7.72	7.88
Cost of goods sold	2.75	3.38	2.86	3.54	3.99
Gross profit	4.26	4.40	3.95	4.18	2.89
Gross margin	61%	57%	58%	54%	37%
Business
Total revenues	2.87	1.15	1.38	1.82	1.97
Cost of goods sold	0.96	0.30	0.37	0.52	0.62
Gross profit	1.90	0.85	1.01	1.30	1.35
Gross margin	66%	74%	73%	72%	68%
Professionals
Total revenues	0.43	0.57	0.55	0.43	0.44
Cost of goods sold	0.05	0.07	0.06	0.07	0.06
Gross profit	0.38	0.50	0.48	0.36	0.38
Gross margin	88%	88%	89%	84%	86%
Total revenues	10.30	9.51	8.73	9.96	10.29
Gross profit	6.54	5.76	5.45	5.84	4.61
Gross margin	63%	61%	62%	59%	45%

Higher OPEX due to increased shipments and sales activities

OPEX by function

• Increased R&D cost due to less capitalization
• General and administrative costs stable following strict cost control and reorganization
• Increased freight costs with higher volumes shipped
• Higher commission and marketing costs related to 25% underlying growth in Consumer segment revenues

Continued progress on inventory management

Highlights

• Total inventories reduced to USD 10.5m, down USD 3.4m from previous quarter
• Met target to reduce inventory to 250 days at year end

Financials

Balance sheet: Main changes related to goodwill and deferred taxes

(USD m)	31.12.2024	31.12.2023
Goodwill	0.0	2.8
Intangible assets	3.4	3.6
Deferred tax assets	2.7	8.8
Property, plant and equipment	0.4	0.6
Right-of-use assets	1.6	2.5
Other non-current assets	0.1	0.1
Total non-current assets	8.1	18.5
Inventories	10.5	15.3
Trade receivables	10.8	11.2
Other receivables	4.7	5.1
Cash and cash equivalents	8.8	14.6
Total current assets	34.8	46.1
Total assets	42.9	64.7
Total equity	28.4	50.3
Non-current interest-bearing liabilities	1.2	1.4
Non-current lease liabilities	1.0	1.9
Other non-current liabilities	0.0	0.1
Total non-current liabilities	2.2	3.4
Current interest-bearing liabilities	0.1	0.0
Current lease liabilities	0.8	0.9
Trade and other payables	8.0	6.5
Contract liabilities	1.5	1.4
Income tax payable	0.0	0.1
Other current liabilities	1.8	2.2
Total current liabilities	12.2	11.0
Total equity and liabilities	42.9	64.7

• USD 8.8m in cash (USD -0.3m vs. Q3 24)
• Goodwill impairment (Business)
• Deferred tax asset reevaluation impact of USD 6.6m

Financials

Cash flow statement

Q4 24 cash bridge

(USD m)

• Positive cash flow from operating activities of USD 1.3m
• Cash flow from investment activities close to 0
• Cash flow from financing activities of USD -0.2m
• Cash balance of USD 8.8m and total available liquidity of USD 13.8m including the revolving credit facility of USD 5.0m with Danske Bank extended to 31 December 2025

Summary and outlook

Balancing growth and profitability

Capitalization on growing demand ¹

2 Disciplined execution

Innovation and market positioning ³

• Convert rising awareness to increased sales on airthings.com
• Enhance campaign steering & unit economics, responding to the increased demand
• Balance stock availability with working capital optimization
• In the Business segment, continue to focus on large enterprises and schools, which represent the highest ROI
• Launch new products to match consumer demand; first out is our next generation radon detector

• Expanding market for air quality monitoring
• Revenues in both Consumer and Business expected to grow YoY in Q1 2025
• Particularly high demand for radon products in the Consumer segment, supported by strong sellthrough numbers in January
• Monitoring potential tariff changes in USA
• Gross margin expected to normalize in Q1
• Expecting positive EBITDA for 2H 2025 and for full year 2026

Guidance	Q1 2025
Revenues (USD m)	9.0 – 11.0

Disclaimer

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This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Airthings ASA (The Company). The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the future in connection with The Company's growth initiatives, profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for The Company. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions.

Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although The Company believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation.

The Company is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither The Company nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared in connection with the Q4 results released on February 6th, 2025. Information contained herein will not be updated. The following slides should also be read and considered in connection with the information given orally during the presentation.