Oslo, Norway - (October 28, 2021) – Airthings (AIRX), the global leader in air quality monitoring and energy-saving solutions, today announced its financial results for the third quarter 2021. Sales revenue increased by 110% year-on-year to NOK 88.5 million, with demand capped by supply.
“Revenue in our Consumer segment more than doubled and Airthings for Business more than tripled in the third quarter. We reached important milestones with both new product launches, sales channel expansions and significant new customer wins in the third quarter, and we are on track to reach our revenue target of more than NOK 1 billion by 2024”, says Airthings CEO Oyvind Birkenes.
Revenue in the consumer segment increased by 115% from the third quarter last year, whereas Airthings for Business saw exceptional growth of 207% year-on-year. Growth in the smaller Pro segment decreased by 16%. Annual Recurring Revenue (ARR) stood at NOK 17.7 million at the end of the third quarter, representing growth of 141% year-on-year. This is primarily driven by the strong growth in Airthings for Business.
Gross Profit Margin was strong at 67.6% for the quarter. EBITDA ended at NOK 0.8 million. The outlook for 4Q21 is also strong, with revenue expected in the range of NOK 100-115 million. 3Q21 revenue was capped due to component availability, and we also foresee this limiting the 4Q21 revenue.
During the third quarter, Airthings for Business secured a 10-year contract to supply air quality monitoring solutions to all private schools across one of Canada’s largest provinces; Quebec. The deal has a total contract value of approximately CAD $8 million (NOK 54.9 million) with service revenues running over the next 10 years following installation. Airthings also announced that the partnership with Home Depot has expanded, and that the large US retailer is now carrying the Airthings Wave Mini in approximately 1,300 stores and Home Depot-exclusive Airthings Digital Radon Detector in more than 1,000 stores across the US.
Key highlights for the third quarter of 2021
- 3Q sales revenue of NOK 88.5 million - Up 110% YoY
- 3Q sales gross profit of NOK 59.8 million - Gross profit margin of 67.6%
- Total ARR reached NOK 17.7 million by end of 3Q - Up 141% YoY
- Airthings for Business sales revenue up 207% YoY to NOK12.1 million, with 74% of sales through the partner network
- Awarded 10 year contract with >250 schools in Quebec
- Growing retail footprint with increased availability in 1,300 Home Depot locations
- Launched View CO2 for Business with 10 years of battery life
Capital Markets Day: forward-looking statements
Airthings ASA (Airthings) will host a Capital Markets Update later today, to present a strategy update focusing on the consumer and business segments. The presentations will contain certain forward-looking statements which can be summarized as follows:
- Airthings is on schedule to reach its 2024 targets of NOK 1 000m+ in revenue and NOK 200m+ in ARR.
- Airthings has consistently reported gross margins of approximately 65% over the past years and believes this will continue going forward.
- Airthings will continue to invest in future growth with R&D, sales and marketing, but these investments will decline in percent of revenue.
- Based on the long-term growth outlook, also beyond 2024, and increasing operational leverage, Airthings introduces a long-term operating model targeting EBITDA >25% based on a sustainable gross margin level of ~65%.
- Airthings assesses its cash position to be sufficient to continue the organic growth.
3Q 2021 Results Presentation
The 3Q 2021 will be presented by CEO Øyvind Birkenes and CFO Magnus Bekkelund at 08:00 (CET) at the Felix Conference Center, Aker Brygge, Oslo, Norway.
The presentation is open to the public and can also be followed via the following link:
Capital Markets Update
Airthings’ Capital Markets Update at Felix Conference Center starts at 14:00 CET. CEO Oyvind Birkenes will be joined on stage by Chairman, Aksel Lund Svindal, CMO Lauren Pedersen, Head of Consumer Products Jorgen Solstad, VP & GM of Airthings for Business Pål Berntsen and CFO Magnus Bekkelund. The presentations are expected to be concluded at around 16:00 CET.
The presentation is open to the public and can be followed via the following link:
The presentations will be made available at 13:00 CET. A recorded version of the presentation will also be available after the event.
About Airthings ASA
Airthings is a global leader within indoor air quality solutions for consumers, businesses and professionals. The company's highly innovative solutions resolve global issues related to air quality and air contaminants, while at the same time enabling a reduced CO2 footprint by optimizing energy consumption in buildings. Airthings is led by a team of experienced engineers and technology professionals that together share a common goal: to empower the world to breathe better.