Circle (CIRC) H1 2024 earnings summary

Executive summary

• Consolidated production value reached €7.3 million in H1 2024, up 2% year-over-year, 10% versus normalized H1 2023, and 20% over H2 2023.

• Growth driven by proprietary software, SaaS/cloud services, and international expansion, with 30% of revenues from international projects.

• Launched Connect 4 Agile Growth 2027 plan, focusing on smart intermodal hubs, digitalized transport, international logistics corridors, and green transition.

• Key projects included new releases of Milos® Global Supply Chain Visibility, expansion of Milos® Intelligence, and launch of NEXT Customs for digital customs optimization.

• Significant investments and exceptional costs in H1 2024 impacted profitability but are expected to yield benefits in H2 2024 and beyond.

Financial highlights

• Proprietary software sales up 1% year-over-year, 27% vs normalized H1 2023, and 68% vs H2 2023.

• Federative services revenues up 28% year-over-year, 37% vs normalized H1 2023, and 42% vs H2 2023.

• EBITDA at €1.75 million (24.1% margin), down 11% year-over-year but up 12% vs normalized H1 2023 and 42% vs H2 2023.

• Net income was €1.03 million, down 8% year-over-year but up 43% over normalized H1 2023 and 86% over H2 2023.

• Net equity at €14.6 million (up from €10 million at end-2023), net financial position at €5.2 million.

Outlook and guidance

• Expectation of accelerated growth in H2 2024 as PNRR funds are deployed and geopolitical tensions ease.

• Focus on federative services, proprietary products, and leveraging regulatory advances (e-CMR, eFTI) for new market opportunities.

• Strategic roadmap to 2027 targets expansion in the Mediterranean and Central Europe, innovation in AI, and green transition.

• External growth opportunities under evaluation, with potential acquisitions planned.