On Feb 3, French generative AI startup LightOn reported its first results since November, revealing that its 2024 revenue fell short of expectations due to delayed contract signings.
Following the announcement, LightOn's shares dropped by 7.4% to 17.39 euros by 0811 GMT, erasing a portion of its year-to-date gains, which had reached approximately 34%.
The company disclosed that its annual recurring revenue (ARR) for 2024 was 1.2 million euros ($1.23 million) and anticipated this metric to increase to 6 million euros in the current year. Despite this projection, the 2024 figure did not meet LightOn's initial forecast, as it aimed to double its end-July ARR of 0.9 million euros by the year-end.
In response to these results, LightOn clarified that the revenue discrepancy was primarily due to delays in finalizing contracts and affirmed that it did not undermine the existing sales momentum.
Moreover, the company highlighted a significant growth in its corporate clients, which doubled from four to eight between the end of July and December, falling short of the target of around ten clients.
Looking ahead, LightOn emphasized its focus on AI expansion in Europe and the Middle East to drive further growth, starting with France and expanding into other European markets.
(Note: $1 = 0.9775 euros)