• Revenue of $1.7 million, down 51% on previous corresponding period
• Operating costs down 36% on previous corresponding period
• Adjusted EBITDA loss of $0.8 million, an improvement of 25% on previous corresponding period

X2M Connect Limited (ASX:X2M) reported its quarterly activities and Appendix 4C for the period ended 31 December 2024. Revenue for the quarter was $1.7 million, down 51% on the previous corresponding period, reflecting a softer market in Korea and the company's strategy to exit low-margin hardware-only sales. Operating costs were down 36% on the previous corresponding period, primarily due to reductions in headcount and administrative expenses. The adjusted EBITDA loss was $0.8 million, an improvement of 25% on the previous corresponding period. The company's enterprise and government customer base continued to grow, reaching 80 customers, up 10% on the previous corresponding period. Total connected devices as at 31 December 2024 was 544,910, an increase of 5% on the previous corresponding period. The company reported net cash outflows from operating activities of $0.6 million during the quarter, versus cash inflows of $0.7 million in the previous corresponding period, mainly due to the timing of an R&D refund. The company ended the quarter with $0.7 million in total cash and had $0.5 million in undrawn loan facilities.

The company is expecting calendar 2025 to be a productive year, with strategically important initiatives coming over the next few months, including rollouts in the Middle East and a potential market entry into India. These markets, along with Australia, are expected to provide strong growth opportunities for the company.