UK AI Stock Soars 53% in 2024: Profits Loom Large!

Windward, a UK AI maritime platform, has grown by 53% in 2024 and is almost profitable, even though it is currently losing money. This is due to strong client growth and rising income.

Earlier this year I purchased UK based stock Windward, which has risen by 53% since January 1st. However, I expect it to climb even higher in the years ahead.

Windward runs a platform that uses predictive analytics and artificial intelligence (AI) to help clients see and deal with risks on the high seas.

Insurance companies use it to figure out risk and stop fraud, oil traders use it to make money, and states use it to make sure that maritime rules are followed.

Freight forwarders and cargo owners also use Windward to keep track of shipments in real time, which makes sure that operations run smoothly and deliveries happen on time. Since about 90% of all things in the world are shipped by sea, this skill is more important than ever.

Clients like BP, Shell, the US Coast Guard, and Interpol are big names in the business world. Lord Browne, who used to be the head of BP, is in charge of it.

The company said on August 20 that the first half had been good. Year-over-year sales went up 37% to $17.6 million, and annual contract value (ACV), which shows how sales will grow in the future, went up 35% to $37.2 million.

It got 32 new business customers, like Bernhard Schulte Shipmanagement and Berge Logistics, bringing the total number of customers to 219 at the end of the time. A few smaller customers leaving was more than made up for by this.

Profitability Challenges and Future Outlook

The fact that the business isn’t yet making money is the biggest risk to the financial case. It lost $9m last year, and it’s likely to lose another $2.5m this year.

But Windward is quickly moving in the direction of making money. Over the past year, the EBITDA loss shrunk from $3.8m to $1.3m, and the gross margin went up from 79% to 81%.

It predicts sales of $36.2 million, which is 28% more than last year, and is sure it will reach an adjusted EBITDA break-even run rate. This rising income is good news.