Teneo AI (TENEO) Q4 2024 earnings summary

Executive summary

• Achieved significant milestones in Q4 2024, including first cash flow positive month, record gross margin, and 1 billion annualized API calls as SaaS metrics surged.

• SaaS API call revenues grew 294% year-over-year, with SaaS ARR up 142% and total ARR up 65% compared to Q4 2023.

• Demonstrated scalability of the business model, with costs not scaling linearly with revenue.

• Broke through in US go-to-market strategy, focusing on large enterprise accounts and partnerships, especially with Genesys.

• Rebranded to Teneo AI and launched new AI solutions, aligning product and company identity for stronger market presence.

Financial highlights

• Net revenue retention (NRR) reached 135% in Q4 2024, outperforming most SaaS peers.

• SaaS API call revenues: 14.8 MSEK in Q4 2024 (+294% YoY); SaaS API call volumes: 60.3 million (+234% YoY).

• SaaS ARR: 75.1 MSEK (+142% YoY); total ARR: 103.9 MSEK (+65% YoY); recurring revenues: 26.3 MSEK (+67% YoY).

• Gross margin (excluding commission) increased to 87% in Q4, up from 75% last year.

• Adjusted EBITDA improved to -1.7 MSEK in Q4 2024 from -5.8 MSEK in Q4 2023.

• Cash position at year-end was 18.4 MSEK, rising to 85.7 MSEK after receivables and share issue.

Outlook and guidance

• Focus for 2025 is on expanding with Genesys partnerships, large US accounts, and Nuance IVR replacement market.

• Intends to increase OPEX by ~10% in H1 2025 to support new sales and market capture.

• ARR growth remains the primary target for 2025, aiming for over 200 MSEK ARR.

• Expects continued strong growth in existing accounts and new customer additions, especially in the US.