Clavister (CLAV) Q4 2024 earnings summary

Executive summary

• Achieved strong order intake of SEK 134 million, with contributions from all business areas, including a significant SEK 53 million defense order for CyberArmour to the CV90 and net sales growth of 23% to SEK 59 million year-over-year.

• Annual recurring revenue (ARR) from software subscriptions grew 14.4% year-over-year, reaching 137.6 MSEK, providing a solid base for future sales.

• Order book at year-end reached SEK 300 million, mainly from defense and telecom sectors.

• Positive cash flow from operating activities for both Q4 and the full year.

• No significant post-closing events reported.

Financial highlights

• Net sales increased 23% year-over-year in Q4 2024, reaching SEK 59 million, marking the strongest quarter to date.

• Gross profit grew over 25% in Q4, with gross margin at 76.8%, slightly down due to a higher share of hardware-centric sales.

• Adjusted EBITDA for Q4 rose to SEK 11 million (margin 17.3%), with FY 2024 adjusted EBITDA at SEK 36 million (margin 18.2%).

• Adjusted EBIT for Q4: -0.7 MSEK; FY 2024: -8.3 MSEK, both showing significant improvement year-over-year.

• Cash balance at year-end: 83.2 MSEK.

Outlook and guidance

• Targeting EBIT positive for full year 2025 and net profitability in 2026, supported by reduced financial costs from accelerated debt repayments.

• Ambition for 2025: EBITDA margin of at least 20%, positive EBIT, and positive operational cash flow despite increased sales and marketing investments.

• Targeting sales growth of at least 20% CAGR for 2025–2027.

• Expecting continued ARR and net sales growth, with investments in sales and marketing to drive profitable growth.

• Order intake momentum and recurring revenue model seen as sustainable for future quarters.