Acroud (ACROUD) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked by industry-wide challenges, with revenue down 6% year-over-year to EUR 9.24 million and organic decline of 1.3%.

• Adjusted EBITDA fell 31% to EUR 815 thousand; profit after tax was EUR -1.04 million, improved from EUR -1.87 million last year.

• New Depositing Customers (NDCs) dropped 43% to 41,204, reflecting a strategic shift to higher-quality acquisition.

• Cash flow from operating activities was EUR 206 thousand, down from EUR 875 thousand in Q3 2023.

• Focus remains on capital structure optimization and long-term sustainability amid market headwinds.

Financial highlights

• Q3 revenue: EUR 9.24m (down 6% y/y); first nine months: EUR 28.23m (down 4% y/y, organic growth 2%).

• Adjusted EBITDA Q3: EUR 815k (down 31% y/y); nine months: EUR 3.53m (down 28% y/y).

• EBITDA Q3: EUR 790k (down 16% y/y); nine months: EUR 5.91m (up 62% y/y, due to one-off items).

• Profit after tax Q3: EUR -1.04m (improved from EUR -1.87m y/y); nine months: EUR 1.34m (vs. EUR -23.2m y/y, prior year included EUR 20m impairment).

• EPS after dilution Q3: EUR -0.006 (vs. -0.012 y/y); nine months: EUR 0.008 (vs. -0.161 y/y).

Outlook and guidance

• Management remains optimistic about long-term prospects, focusing on strengthening financial foundation and operational efficiency.

• Company aims to reduce net debt/adjusted EBITDA to 2.5x or lower by December 2025; current ratio is 3.4x.

• Organic EBITDA growth target of 20% annually for 2023–2025 not met; Jan–Sep 2024 organic EBITDA growth was -15%.