Datalex (DLE) H1 2024 earnings summary

Executive summary

• H1 2024 revenue increased 3% year-over-year to $13.2 million (€13.2 million), driven by 14% platform revenue growth and offset by an 11% decline in services revenue due to prior year customer terminations.

• Gross profit rose 25% year-over-year to $3.8 million, with gross margin expanding to 28.7%–29% from 23.5% in H1 2023.

• Adjusted EBITDA loss improved by 37% year-over-year to $2.0 million, reflecting higher gross profit and cost control.

• Loss after tax was $6.1 million, a slight improvement from the prior year.

• Key developments included successful customer migrations (Aer Lingus, Edelweiss, Air China, Air Macau, easyJet), a €25 million equity raise announcement, and a restructured delivery model implemented in July 2024.

Financial highlights

• Platform revenue: $7.2 million (+14% YoY); services revenue: $5.5 million (–11% YoY); consultancy revenue: $0.5 million (+40% YoY).

• Gross profit: $3.8 million (+25% YoY); gross margin: 28.7%–29% (+5pp YoY).

• Adjusted EBITDA loss: $2.0 million (improved 37% YoY); FX-adjusted EBITDA loss: $2.6 million.

• Loss after tax: $6.1 million (vs. $6.2 million in H1 2023); EPS: –4.6 US cents.

• Operating expenses decreased 6% year-over-year to $5.7–$5.8 million, mainly due to FX benefits.

Outlook and guidance

• Expect continued platform revenue and gross margin growth in H2 2024, though loss of SAS and Virgin Australia will continue to impact year-on-year comparisons.

• Ambition to achieve positive EBITDA in FY 2025 and become cash flow positive in 2026.

• Further capital raise anticipated in 2025 to support product development and growth ambitions.