Elm (7203) Q4 2024 earnings summary

Executive summary

• Achieved 25.6% year-over-year revenue growth to SAR 7,407 million, with net profit up 34.7% to SAR 1,826 million, reflecting strong digital transformation initiatives and expansion across sectors.

• Entered into a share purchase agreement to acquire 100% of Thiqah for SAR 3.4bn, strengthening ICT sector leadership and B2B digital offerings as part of the elm 4.0 strategy.

• Advanced AI initiatives across conversational, transactional, and autonomous domains to drive future growth.

• Expanded internationally into Oman and Egypt through strategic advisory projects, supporting global ambitions.

Financial highlights

• FY 2024 revenue reached SAR 7,407mn, up 25.6% year-over-year, driven by Digital Business and Business Process Outsourcing segments.

• Net profit increased 34.7% to SAR 1,826mn; gross profit up 29.8% to SAR 3,026mn.

• Gross margin improved by 1.31 percentage points to 40.9%; net margin rose 1.7 percentage points to 24.7%.

• Basic EPS climbed to SAR 23.51 from SAR 17.46 year-over-year.

• Other income of SAR 63mn from asset disposals contributed to net profit margin improvement.

Outlook and guidance

• 2025 revenue growth guidance set at 22–24%, EBIT margin at 22–24%, and operating cash flow at 80–90% of net income, excluding the impact of the Thiqah acquisition.

• Focus on driving digital innovation, investing in AI, and expanding digital solutions in high-impact sectors for 2025.

• Continued commitment to international growth and digital transformation leadership.