Digia (DIGIA) Q4 2024 earnings summary

Executive summary

• Achieved record-breaking results in 2024, marking the ninth consecutive year of profitable growth, with all quarters showing year-over-year growth in net sales and EBITA.

• Net sales reached an all-time high of €205.7M, up 7.1% year-over-year; EBITA grew 26.5% to €21.2M.

• Digital Experience/modern software development segment grew 18% in Q4, driven by AI integration.

• Service and maintenance business provided stability, accounting for nearly half of Q4 net sales.

• International business accounted for 11.8% of net sales in 2024, with a target of 15% by end of 2025.

Financial highlights

• Q4 net sales were €54.5M, up 2.6% year-over-year; Q4 EBITA was €5.85M, up 15.2%; EBITA margin improved to 10.7%.

• Full-year EBITA margin: 10.3%; EBIT margin increased to 8.9% from 7.2% in 2023.

• Earnings per share rose 34.8% to €0.50; cash flow from operations increased 47.6% to €25.0M.

• Return on equity reached 16.7%; equity ratio strengthened to 52.9%; net gearing improved to 13.9%.

• Interest-bearing net liabilities decreased 53% to €11.6M.

Outlook and guidance

• Net sales are expected to grow in 2025, with EBITA projected to remain at or above 2024 levels.

• Strategic focus on sustainable growth, international expansion, and operational efficiency.

• Growth investments planned in sales, service productization, and international business.

• Board proposes a dividend of €0.18 per share, up from €0.17 for 2023.