Carasent (CARA) Q4 2024 earnings summary

Executive summary

• Achieved financial performance in line with 2024 targets, including strong organic growth, cost efficiencies, and a successful relisting on the Stockholm Stock Exchange.

• Completed the acquisition of Data-AL, entering the German market and strengthening the foundation in Germany.

• Major development projects progressed, including the Surgery Module for Webdoc, NLL, Volvat, Patient platforms, and Webdoc X, with strong customer interest and implementation timelines set for autumn and early next year.

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

• Signed three major agreements expected to drive growth in 2025, with most impact in H2 2025 and early 2026.

Financial highlights

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

• ARR base grew significantly in Q4, driven by the Data-AL acquisition, adding over SEK 30 million in ARR; contracted ARR reached SEK 304 million, with 17% organic growth.

• Q4 recurring revenues: SEK 70.0 million (up 20% YoY); FY recurring revenues: SEK 252.0 million (up 13% YoY).

• Q4 gross profit: SEK 65.9 million (up 26% YoY), gross margin 84%; FY gross profit: SEK 232.7 million, gross margin 85%.

• Q4 adjusted EBITDA: SEK 11.7 million (margin 15%); FY adjusted EBITDA: SEK 42.2 million (margin 15%).

• One-off costs of NOK 20 million in Q4 and NOK 30 million for the year, related to relisting and acquisition activities, are not expected to recur.

• Free cash flow improved by NOK 18 million year-over-year; Q4 free cash flow NOK 7.7 million.

• Cash and cash equivalents at year-end: SEK 264 million.

Outlook and guidance

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

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

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

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

• Focus on efficient resource use, timely project delivery, and continued cost control.