eWork Group (EWRK) Q3 2022 earnings summary

Executive summary

• Q3 order intake rose 18%, revenue increased 24% to 3,492 MSEK, and operating income nearly doubled to 46.4 MSEK.

• Average consultants on assignment reached 12,800, up over 17% YoY; quarter-end count was 13,300.

• Market share gains, network expansion and an updated service offering strengthened the position as a bridge between consultants and assignments.

Financial highlights

• Revenue increased 24% to 3,492 MSEK, supported by demand, sales, higher consulting fees and growth across markets.

• Operating income rose 97% to 46.4 MSEK; improved profitability in Consulting Services and Managed Services and higher add-on service contributions supported growth.

• Order intake increased 18% to 3,606 MSEK from 3,054 MSEK; Q3 new contracts rose 29%.

• Q3 EBIT included positive non-recurring items of 9.2 MSEK; adjusted for one-time items, EBIT margin was 106 bps.

• Core services’ improved profitability included a positive one-time effect of 3 MSEK.

Outlook and guidance

• Demand for services expected to remain high through the rest of 2022.

• Previous forecast maintained: higher growth rate and operating margin in 2022 than in 2021.

• Positive outlook for the remainder of the year despite external uncertainty.