Carasent (CARA) Q4 2024 earnings summary

Executive summary

• Achieved all major 2024 objectives, including strong organic growth, financial targets, Stockholm Stock Exchange relisting, and the acquisition of Data-AL, strengthening the German market position.

• Integration of Data-AL progressing well, with a unified roadmap and plans to fully replace legacy products with Webdoc X.

• Large development projects advancing, including Surgery, NLL, Volvat, Patient platforms, and Webdoc X, with pilot projects live in Germany.

• Signed major agreements expected to drive growth in 2025 and 2026, with high customer interest and large contracts scheduled for implementation in autumn.

• Break-even achieved for the full year, with significant improvement in adjusted EBITDAC in Q4.

Financial highlights

• Q4 2024 net sales: SEK 78.7 million (up 22% YoY); FY 2024 net sales: SEK 275.3 million (up 12% YoY).

• Q4 recurring revenues: SEK 70.0 million (up 20% YoY); ARR base grew significantly, with Data-AL adding over SEK 30 million.

• Gross profit increased by 26% in Q4, gross margin improved from 81% to 84%, mainly due to reduced hosting costs and the sale of Confrere.

• Adjusted EBITDA margin improved to 15% in Q4 (SEK 11.7 million), up from 10% YoY; FY adjusted EBITDA margin: 15%.

• One-off costs of NOK 20 million/SEK 20.4 million in Q4 and NOK 30 million for the year, related to relisting and acquisition activities.

Outlook and guidance

• 2025 targets: Revenue ~SEK 350 million, EBITDA SEK 82–87 million, EBITDA–capex SEK 44–49 million, with reporting currency changed to SEK.

• Growth in 2025 expected from new agreements and surgical functionality, with most impact in H2 2025 and early 2026.

• No material revenue contribution expected from Webdoc X in Germany for 2025; significant impact anticipated from 2026-2027.

• ARR churn expected to rise temporarily to 3% in Q2 2024 due to bankruptcies and contract losses, but considered a one-off effect.

• Slightly lower recurring revenue at year-end due to bankruptcies and contract losses among Swedish healthcare providers; expected to recover during 2025.