CodeMill (CDMIL) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was 21,226 KSEK, up 22% year-over-year; EBIT reached 2,062 KSEK from -467 KSEK last year.

• EBITDA for Q3 was 6,004 KSEK (28% margin), and net income was 2,214 KSEK, both showing strong improvement.

• Recurring revenue run-rate increased 28% year-over-year to 39,402 KSEK.

• Cash position at quarter-end was 26,939 KSEK, up from 10,464 KSEK a year ago.

• A major consulting contract worth 18.4 MSEK in 2024 will not be renewed for 2025, aligning with the shift toward product-based revenue.

Financial highlights

• Q3 net sales grew 22% year-over-year; nine-month sales up 21% (41% adjusted for 2023 one-off).

• EBIT for Jan–Sept was 8,528 KSEK, up from -3,411 KSEK; EBITDA for the period was 20,090 KSEK (29% margin).

• Cash flow from operations for Jan–Sept was 19,468 KSEK, up from 6,644 KSEK.

• Gross margin for Q3 was 91%, up from 87% last year.

• EPS for Q3 was 0.16 SEK (vs. -0.04), and for Jan–Sept 0.62 SEK (vs. -0.28).

Outlook and guidance

• Management expects continued growth in recurring revenues and is focusing on expanding the US sales team.

• The loss of a large consulting contract will accelerate the transition to a product-focused business model.

• Several product innovations and customer PoCs are expected to drive future sales.