Alfa Financial Software (ALFA) Q4 2024 TU earnings summary

Executive summary

• Achieved operating profit growth of 13% to £34m for FY24, exceeding market expectations by 5%.

• Revenue reached £110m, up 8% year-over-year and in line with expectations.

• Exceptional pipeline conversion with eight contract wins, driving TCV up 34% to £221m.

• Alfa Systems 6 fully launched globally, receiving strong customer feedback and driving sales.

Financial highlights

• Q4 revenue grew 21% year-over-year to £29m, with 23% growth at constant currency.

• Subscription revenues in Q4 increased 17% year-over-year.

• Q4 Software revenues surged 84% year-over-year; Services revenues rose 7%.

• Costs for FY24 were approximately £1m lower than expected.

Outlook and guidance

• Management remains confident in the strength and diversity of the sales pipeline.

• Focus for 2025 will be on client-led functional enhancements to maintain market leadership.

• Well positioned to drive growth in 2025 and beyond.