Cyviz (CYVIZ) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 12.9% year-over-year to NOK 139 million, with EBITDA dropping to NOK 2.2 million from NOK 9.4 million last year, impacted by project delays and a NOK 5 million one-off from legacy project reviews.

• Order intake in Q2 rose 27% year-over-year to NOK 156 million, with July 2024 seeing the third highest monthly orders ever and backlog reaching an all-time high of NOK 452 million by July 31.

• Gross margin remained strong at 49.6%, reflecting robust deal quality and pricing.

• Positive momentum in private sector demand, especially in the U.S., Europe, and Middle East, offsetting public sector slowdown.

• Strategic focus on growth markets, transition to a subscription-based model, and organizational restructuring to improve efficiency and competitiveness.

Financial highlights

• Q2 revenue: NOK 139 million, down 12.9% year-over-year; rolling 12-month revenue at NOK 534 million, down NOK 59 million year-over-year.

• Q2 gross profit: NOK 69 million, 49.6% margin; rolling 12-month gross profit at NOK 286 million, up 2% year-over-year.

• Q2 EBITDA: NOK 2.2 million, down NOK 9.4 million year-over-year; rolling 12-month EBITDA at NOK 20.8 million, down from NOK 36.7 million.

• H1 2024 revenue: NOK 246 million, down 17% year-over-year; gross profit: NOK 141 million, 57.3% margin; EBITDA: NOK 7.3 million, down NOK 7.0 million.

• Operating cash flow for H1 was positive at over NOK 30 million, but Q2 operating cash flow was NOK 0.3 million, impacted by slower collections and inventory build-up.

Outlook and guidance

• Order backlog at an all-time high of NOK 452 million by July 31, supporting future revenue.

• Continued positive market trends and strong pipeline expected for the rest of the year, with private sector investment recovery.

• Launch of a new subscription-based software platform in September, expected to drive recurring revenue growth and market reach.

• Organizational restructuring into three regional hubs to improve efficiency and margin.

• Medium-term EBITDA margin target of 15-20% remains unchanged.