Carasent (CARA) Q2 2024 earnings summary

Executive summary

• Achieved 15% organic recurring revenue growth in Q2 2024, with signed but not implemented ARR rising to NOK 17.17 million from NOK 2 million a year ago and a net retention rate of 111%.

• Revenue grew 5% year-over-year in Q2 2024 to NOK 66.3 million, with positive cash flow and significant YoY improvements in profitability and cost efficiency.

• Major one-off projects, including takeover interest, relisting, and German acquisition, led to high non-recurring costs impacting the quarter.

• Divestment of Confrere streamlined operations and improved profit margin.

• Maintained strong cost control and improved operational efficiency, supporting margin expansion.

Financial highlights

• Q2 2024 revenue reached NOK 66.3 million (+5% YoY); recurring revenue reached NOK 61 million, up from NOK 54 million a year ago.

• Adjusted EBITDA margin increased to 16% from 8–9% YoY; adjusted EBITDA NOK 10.4 million, up 84%.

• Gross profit margin improved to 85% from 82% YoY.

• Net loss in Q2 narrowed to NOK -5.7 million from NOK -51.3 million in Q2 2023.

• Cash flow from operations in Q2: NOK 13.7 million; cash balance at quarter-end: NOK 376 million.

Outlook and guidance

• Confident in achieving 15% organic growth and breaking even on EBITDA for the full year, with continued margin improvement and accelerated growth from new contracts and product launches.

• Ongoing relisting process targeting Nasdaq Stockholm in Q4; Webdoc X certification in Germany anticipated in Q1 next year.

• Focus remains on cost control and efficiency, with a strong foundation in a non-cyclical industry and minimal churn.