(Reuters) -French generative AI startup LightOn on Monday reported first results since its November IPO, with 2024 revenue missing its own target due to delayed signing of some contracts.
The LightOn shares fell 7.4% to 17.39 euros by 0811 GMT, slashing the strong gains they have seen since the start of the year to around 34%.​
The company said its annual recurring revenue (ARR) was 1.2 million euros ($1.23 million) in 2024 and confirmed it expected the metric to grow to 6 million euros this year.
But the 2024 number was below LightOn’s guidance, as it had expected to double the end-July ARR of 0.9 million euros by the end of the year.
“This discrepancy, essentially linked to signature delays, does not call into question the current sales momentum,” LightOn said in a statement.
Corporate clients doubled to eight from four between end-July and end-December, compared to the around ten clients it was targeting.
The company said in December it was betting on AI growth in Europe and the Middle East to drive expansion, starting from France and other European markets.
($1 = 0.9775 euros)
(Reporting by Nathan Vifflin in Gdansk; Editing by Milla Nissi)
