Airthings ASA: Annual Report 2021

Annual Report 2021

Key highlights

2021 revenues of

USD 33.7 million

up 60% YoY

2021 total gross profit of

USD 20.6 million

up 55% YoY, with a gross profit margin of 61%

Total ARR reached

USD 2.9 million

at the end of 2021 up 153% YoY

The year in brief

Airthings ASA reported a strong 2021 with revenues growing 60% to USD 33.7 million. Growth was solid across all three business segments. Demand has been even stronger than the revenue figures indicate, as production capacity has been held back by component shortage.

Annual Recurring Revenue (ARR) came in at USD 2.9 million at the end of 2021, representing growth of 153% from 2020. The growth primarily reflects the strong progress in the Airthings for Business segment - a segment which made a step change from USD 1.4 million in revenues in 2020 to USD 6.9 million in 2021.

Gross profit margin was 61% for the full year, which was a decline from 2020 mainly due to changes in the product and channel mix in the Consumer segment and higher component prices. This was partly offset by a higher share of recurring revenue from the Software-as-a-Service offering in Airthings for Business. Recurring revenues in this area generate gross profits of over 80%.

Despite the global supply chain challenges, Airthings can look back at several significant highlights throughout 2021: the releases of View Plus and View CO2 for Business, two material Airthings for Business partnerships with Carrier Corporation and Quebec Government, the rolling-out in thousands of new stores across the US in Walmart, CVS and Home Depot, the launch of My Pollen Levels in the Airthings App, and the acknowledgement as an industry leader in the Frost & Sullivan Indoor Air Quality Systems Report. We see significant growth potential for 2022 after building up product stock and look forward to delivering into a strong market momentum going forward.

Quarterly highlights

1Q

Airthings successfully launched its most advanced air quality monitor View Plus at CES, as well as a new in-app feature, My Pollen Levels. The company also signed a deal with Walmart to roll out in nearly 800 stores in the consumer segment.

2Q

Airthings for Business signed a key partnership with Carrier Corporation. In Consumer, the products were rolled out in more than 3,000 CVS stores in the US, raising the total store count to over 5,500. View Plus began shipping to customers, accelerating market traction and marketing activities.

3Q

Airthings for Business was awarded a 10-yearcontract with the Quebec Government to supply air quality monitoring in all private schools. View CO2 for Business was launched, a new offering enabling further sales opportunities in Airthings for Business and within the Quebec contract. In Consumer, we grew our retail footprint and we are now available in more than 1,300 Home Depot locations.

4Q

The fourth quarter included the successfullaunch of the View series products View Pollution and View Radon, as well as a record-breaking quarter for Airthings for Business in terms of revenue. Frost & Sullivan selected Airthings as industry leaders in their Indoor Air Quality Systems Report, highlighting our growth and innovation.

This is Airthings ASA

Airthings is a leading global technology company of award-winning radon and indoor air quality solutions for homeowners, businesses, and professionals. Founded in 2008, Airthings is on a mission to ensure that people and businesses around the world recognize the importance and impact of indoor air quality and take control of both health aspects and energy consumption through simple, affordable, and accurate technology solutions.

Airthings' products have made radon detection and indoor air quality monitoring easy to deploy, accurate, and user friendly. Our technology has received several accolades including the TIME's Best Inventions award and CES Innovation Award Honors. Frost & Sullivan positions Airthings as industry leader in global indoor air quality market in their 2021 Global Indoor Air Quality Systems report.

Headquartered in the heart of Oslo, Norway, and with offices in the US and Sweden, the company is growing from a current base of over 140 employees from more than 35 nationalities.

Our story

Every idea starts with a problem, and radon testing for homeowners had not improved in almost 30 years. Concerned consumers only had two options - to call a professional to test their radon levels, or to purchase a single-use charcoal test which was then sent to a lab for analysis. Several particle physicists working together at CERN (European Organization for Nuclear Research) saw an opportunity to improve theradon market, and help consumers and busi-nesses take control of their indoor air quality. This was the foundation for the establishment of Airthings in 2008.

We have since branched out from a pure radon focus, into monitoring and controlling of a wide range of air quality issues for homes, busi-nesses, and professionals. On top of this, our products also enable significant energy savings in buildings and contribute to reduced emissions and a lighter environmental footprint.

International expansion & recognition

Airthings have taken a global distribution approach, combining a strong presence in leading online stores with availability in nearly 800 Walmart stores, 3,000 CVS stores, and 1,300 Home Depot stores in the US, and a wide range of regional and national retail chains in several other countries.

Airthings is also building strong relations with leading B2B partners and last year strength-ened the position in the business market with

the signing of a major strategic agreement with Carrier Corporation, a leader in the heating and air conditioning market. The company also won a large tender with the Quebec government in Canada to supply air quality monitoring in all private schools over the next 10 years.

Our technology

Since the start in 2008, Airthings has introduced a steady stream of innovative solutions for consumers, businesses, and professionals to tackle indoor air issues such as radon, particle pollution (particulate matter, PM 2.5), carbon dioxide (CO2), mold risk, airborne chemicals (VOCs) and virus risk. Airthings for Business Indoor Air Quality (IAQ) monitors can be used to satisfy air requirements for the WELL Building Standard, and the products are RESET accredited, demonstrating our high standards in the IAQ market.

The heart of our system is in the cloud where we turn data into advanced analytics. Airthings is gathering tremendous amounts of anonymized data from sensors in homes and buildings around the world, which are being used to add real insights for our customers.

From industrial design and radio protocol to app creation, software and firmware, our technology and solutions are developed in-house. Most of our products are smart products with corre-sponding apps, online dashboards, advanced cloud analytics, and APIs. Airthings now offers digital radon detectors as well as smart indoor air quality monitors and solutions for professionals, homes, schools, offices, and other commer-cial buildings, and is continuously adding new features. This is earning us our reputation of true leadership in the industry.