Exasol (EXL) Q3 2024 TU earnings summary

Executive summary

• Achieved positive EBITDA for three consecutive quarters, with EUR 1 million for the first nine months of 2024, compared to -EUR 4.1 million in the prior year, marking a significant turnaround.

• Revenue grew 11% year-over-year to EUR 29.1 million for the first nine months of 2024, with ARR up 12% to EUR 40.4 million.

• Liquid funds increased to EUR 17.8 million at the end of Q3 2024, up from EUR 13.3 million at year-end 2023.

• Strategy review completed, sharpening focus on on-premise and hybrid customers in regulated industries for 2025.

Financial highlights

• Recurring revenue accounted for nearly all revenue (EUR 29.0 million of EUR 29.1 million), with non-recurring revenue declining.

• Gross profit for 9M 2024 was EUR 29.3 million, up from EUR 25.7 million in 9M 2023, aided by R&D subsidies.

• Personnel and marketing expenses decreased year-over-year, supporting improved profitability.

• Adjusted free cash flow for 9M 2024 was EUR 4.9 million, with liquid funds boosted by pre-IPO stock program cash payments.

• Gross new ARR in Q3 was EUR 1.75 million, slightly above Q3 2023.

Outlook and guidance

• 2024 guidance confirmed: ARR growth up to 10%, revenue growth 10–15%, EBITDA EUR 1.5–2.0 million, and liquid funds EUR 11–13 million.

• Focus remains on maintaining profitability while targeting double-digit growth in the coming years.

• Rule of 40 metric targeted to reach double digits next year, with further improvements over the next three to four years.

• Seasonal increase in new business and growing momentum in new logo generation expected for Q4.