CombinedX (CX) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 17.7% to SEK 765.7M; organic growth was 6.4%. Adjusted EBIT reached a record SEK 80.3M, with a 10.5% margin.

• Q4 revenue increased 5.1% to SEK 210.5M, while organic growth was -0.7%; adjusted EBIT rose to SEK 25.6M and margin to 12.1%.

Financial highlights

• FY profit after tax increased to SEK 70.9M from SEK 35.2M; diluted EPS rose to SEK 4.09 from SEK 2.10.

• Q4 profit after tax was SEK 21.4M versus SEK 12.6M; diluted EPS increased to SEK 1.23 from SEK 0.74.

• FY operating cash flow rose to SEK 81.4M from SEK 40.9M; Q4 operating cash flow was SEK 31.9M versus SEK 20.3M.

• FY reported EBIT was SEK 80.0M, up from SEK 52.6M; EBITDA reached SEK 117.1M versus SEK 80.9M.

Outlook and guidance

• Financial targets: EBIT margin of at least 10%; organic growth above the IT consultancy market; revenue of at least SEK 1B by 2025 including acquisitions; financial net debt no more than 2x EBITDA.

• Management assessed prospects as good and set no financial forecast; Vision 28 8 aims for eight specialist businesses to become leading brands in their domains by 2028.