Crayon Group (CRAYN) Q4 2024 earnings summary

Executive summary

• Achieved full-year Adjusted EBITDA margin of 18.7%, up from 16.2% in 2023, with strong profitability and cash flow, though growth was below ambitions.

• Q4 2024 gross profit reached NOK 1,637m, up 2% year-over-year, with adjusted EBITDA margin improving by 5 percentage points to 19.6%.

• Record-setting Net Working Capital performance, improving NOK 352m year-over-year to minus NOK 1,473m.

• Strategic focus on scaling internationally, especially in public sector and value-added services, with key public sector and consulting wins.

• SoftwareOne announced a recommended offer to acquire all shares, with completion expected in Q2 2025.

Financial highlights

• 2024 gross profit was NOK 6,283m, up 11% year-over-year; Q4 gross sales reached NOK 16bn, with full-year sales nearly NOK 60bn.

• Adjusted EBITDA for 2024 was NOK 1,174m, up 28%; Q4 adjusted EBITDA was NOK 321m, up 33% year-over-year.

• Net profit for Q4 was NOK 42m, an improvement of NOK 165m from Q4 2023; EPS for Q4 was NOK 0.48, up from -0.87.

• Operating cash flow for Q4 was NOK 1,889m, with liquidity reserve at NOK 3,518m.

• Factoring reduced from NOK 460m to NOK 57m year-over-year.

Outlook and guidance

• 2025 outlook: gross profit growth of 15%-20%, Adjusted EBITDA margin of 19%-22%, and Net Working Capital of approximately -15%.

• Growth expected to accelerate in the second half of 2025, with Q4 2024 seen as an isolated event.

• Medium-term ambition is a gradual increase in EBITDA margin to 25%.

• CapEx expected at 2.5%-3% of gross profit, with a small steady increase.

• Seasonality expected to continue, with Q2 and Q4 typically stronger for volume and EBITDA.