bullish
X2M Connect Limited - Solid Operating Leverage Demonstrated in H1 23
SUMMARY
- X2M Connect Limited (ASX:X2M) has reported a 23% reduction in RaaS-adjusted EBITDA losses (to $2.4m) for H1 FY23 on the back of operating leverage from 96% sales growth, 135% gross profit growth and just a 14% increase in operating costs.
- While sales growth was driven by hardware sales (connected devices +100% over the pcp), hardware margins have improved ~500bps and connected devices in the field ultimately drive SaaS/maintenance fees (platform fees).
- Cash at bank was $3.05m with an additional net $0.5m received in January 2023 from an R&D tax credit.
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