Datalex (DLE) H1 2024 earnings summary

Executive summary

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

• Gross profit rose 25% year-over-year to $3.8 million, with gross margin expanding to 28.7% (up 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.

• Announced a €25 million equity raise to repay debt, fund working capital, and support growth ambitions, with further capital needed in 2025.

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% (up 5pp YoY).

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

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

• Cash and short-term investments: $3.5 million at June 30, 2024; net cash outflow from operations: $1.3 million.

Outlook and guidance

• Expect continued platform revenue and gross margin growth in H2 2024, though prior customer losses will impact year-on-year comparisons.

• Targeting positive EBITDA in FY 2025 and cash flow positivity in 2026.

• Board intends to raise at least €5 million additional capital in H1 2025, with timing dependent on investment pace.