DATAGROUP (D6H) Q3 2024 earnings summary

Executive summary

• Achieved 7.5% sales growth in Q3 and 2.9% growth over nine months, driven by organic growth, strong order intake in cybersecurity and cloud, and a diversified SME customer base.

• Secured record new and upsell annual contract volume, with 24 new customers and new CORBOX orders exceeding €23m.

• Strategic acquisitions (conplus, iT TOTAL, ISC) and investments in AI, cybersecurity, and cloud underpin future growth.

• Investments in AI automation (HIRO) and cloud services are driving operational efficiencies and new business.

• Major cybersecurity contract secured with 24 North Rhine-Westphalian universities, valued at several million euros.

Financial highlights

• Q3 revenue rose to €131.8m (+7.5% YoY); nine-month revenue at €380.5m (+2.9% YoY).

• Gross profit increased by 10% in Q3 and 6.6% in nine months year-over-year.

• EBITDA for nine months was €58.3m (margin 15.3%), down from €59.6m (margin 16.1%) year-over-year.

• EBIT margin at 8.4% for nine months; net income for nine months was €18.3m, down from €21.1m year-over-year.

• Net financial debt to EBITDA at 2.0, reflecting acquisition activity and temporary factoring decline.

Outlook and guidance

• Full-year revenue guidance confirmed at €510–530m, with Q4 growth expected from new contracts.

• EBITDA guidance at €77–81m and EBIT at €43–46m reaffirmed.

• Management remains confident in meeting full-year and long-term growth targets, supported by recurring revenues.