Cyviz (CYVIZ) Q3 2024 earnings summary

Executive summary

• Q3 2024 showed strong recovery with revenue up 33.1% year-over-year, robust order intake, and improved gross profit and EBITDA, following a slow Q2.

• Major contract wins included Equinor, Microsoft, Visa, Accenture, KPMG, and a strategic alliance with IBM X-Force, supporting growth across regions.

• The company is transitioning to a software-driven model, launching a new platform and expanding its partner ecosystem for broader market reach in 2025.

• Operational improvements included IT upgrades, a new organizational structure, and a Letter of Credit to improve AR collection.

• Regional structure consolidated to improve competitiveness and operational efficiency.

Financial highlights

• Q3 revenue reached NOK 160.1 million, up 33.1% year-over-year; gross profit was NOK 82.9 million (48.2% margin), up NOK 20.3 million.

• Q3 EBITDA was NOK 9.1 million, up NOK 15.6 million from Q3 2023; net loss improved to NOK -9.6 million.

• Q3 order intake was NOK 192.4 million, up 107.6% from Q3 2023; rolling 12-month bookings at NOK 775 million, up from NOK 517 million.

• Gross profit for the last 12 months at NOK 306 million; rolling 12-month EBITDA at NOK 36.4 million.

• Book-to-bill ratio improved to 1.2 in Q3 2024; equity ratio at 31.0% at quarter-end.

Outlook and guidance

• Q4 order intake expected to remain strong, though unlikely to match last year’s exceptional single NOK 200 million deal.

• Focus remains on profitable growth, cash management, and leveraging new software and partner strategies, with a medium-term EBITDA margin target of 15-20%.

• Demand for advanced solutions, especially in mission-critical sectors, is expected to grow in 2025; US federal market expected to rebound post-election.

• Positive market trends and pipeline development expected to drive order intake across all regions and verticals.