Alfa Financial Software (ALFA) Q3 2024 TU earnings summary

Executive summary

• Q3 revenue reached £28m, up 14% year-over-year and 16% at constant currency.

• Subscription revenues grew 19% compared to Q3 last year, with software revenues rebounding.

• Services revenues were flat year-over-year but expected to grow in Q4.

• Operating profit for FY24 is now expected to be £1m ahead of previous guidance due to lower costs.

• Alfa Systems 6 fully launched, delivering new automation and integration features.

Financial highlights

• Revenue for Q3 was £28m, a 14% increase year-over-year and 16% at constant currency.

• Subscription revenue up 19% year-over-year; software revenue increased after prior investment period.

• Services revenue flat year-over-year, with growth anticipated in Q4.

• Full-year costs expected to be £1m lower, with some costs deferred to next year.

Outlook and guidance

• Board expects mid to high single digit revenue growth for FY24, despite 1-2% currency headwinds.

• Operating profit for FY24 now forecasted £1m above previous expectations.

• Confident in 2025 performance and long-term outlook, supported by strong pipeline.