Fabasoft (FAA) Q2 24/25 earnings summary

Executive summary

• Sales revenue increased by 7.7% year-over-year to €42.5m for the six months ended 30 September 2024, driven by recurring revenues.

• EBITDA rose 1.2% to €10.6m, while EBIT slightly decreased by 1.0% to €6.6m due to higher investments and expenses.

• Net income for the period was €4.8m, nearly flat compared to the prior year.

• Workforce grew to 495 employees, up 1.4% year-over-year.

• The group continues to invest in AI-driven product innovation, sales, and international expansion.

Financial highlights

• Sales revenue: €42.5m (up 7.7% year-over-year); Q2 revenue: €22.1m (up from €19.8m in Q2 2023).

• EBITDA: €10.6m (up 1.2% year-over-year); EBIT: €6.6m (down 1.0% year-over-year).

• Net income: €4.8m (down 0.2% year-over-year); EPS: €0.41 (up 2.5% year-over-year).

• Cash and cash equivalents: €24.0m (up 24.9% year-over-year).

• Equity at period end: €33.3m (up 19.2% year-over-year); equity ratio: 44.2%.

Outlook and guidance

• Ongoing transformation from license sales to recurring cloud and SaaS revenues is expected to continue.

• Investment focus remains on product innovation, AI, sales, marketing, and talent acquisition.

• Profitability will be impacted by growth investments and personnel cost increases, with priority on long-term growth over short-term margins.

• Fabasoft expects to remain well positioned in a challenging market environment due to its comprehensive digital solutions.