Digital Workforce Services (DWF) H2 2023 earnings summary

Executive summary

• 2023 met the targeted turnaround: adjusted EBITDA turned positive at €0.2m from a €0.9m loss, while revenue declined 2.2% YoY to €24.9m.

• Continuous Services increased its share of annual revenue to 61.1%, supporting the strategic shift toward recurring services.

• H2 revenue fell 8.7% YoY to €12.3m; adjusted EBITDA was negative €0.2m, including €0.6m of non-recurring cost-saving expenses.

Financial highlights

• FY revenue was €24.9m, down 2.2% YoY; sales margin was €8.2m versus €9.3m, and margin declined to 33.0% from 36.5%.

• FY EBITDA was negative €0.6m and adjusted EBITDA positive €0.2m; operating loss narrowed to €0.8m from €2.6m.

• FY net loss improved to €0.7m from €3.0m; EPS was negative €0.06 versus negative €0.27.

• H2 revenue was €12.3m, down 8.7% YoY; EBITDA was negative €0.8m, adjusted EBITDA negative €0.2m, and EPS negative €0.08.

Outlook and guidance

• FY 2024 revenue is expected to exceed 2023, with positive adjusted EBITDA improving from 2023.

• By end-2026, the target is €50m revenue and EBITDA above 10%.

• Strategic investment is directed toward growth markets, notably the US and UK, with potential acquisitions remaining part of plans.