Fabasoft (FAA) Q4 23/24 earnings summary

Executive summary

• Revenue increased 16.9% year-over-year to €80.95m, driven by recurring software and services, which now represent 52.7% of total revenue.

• EBIT rose 34.0% to €13.39m and EBITDA grew 28.9% to €21.60m compared to the previous year.

• Net income increased 41.1% to €9.63m, with basic EPS up 45.6% to €0.83.

• R&D investment remained high at 31.4% of revenue, focusing on AI, cloud, and product innovation.

• Workforce expanded to 497 employees, up 10.2% year-over-year.

Financial highlights

• Sales revenue: €80.95m (+16.9% year-over-year); recurring revenue: €42.64m (+16.4%).

• EBIT: €13.39m (+34.0%); EBITDA: €21.60m (+28.9%).

• Net income: €9.63m (+41.1%); equity at period end: €30.64m (+14.7%).

• Cash flow from operations: €19.48m (+177.3%); cash and equivalents: €25.07m (-5.6%).

• Basic EPS: €0.83 (+45.6%).

Outlook and guidance

• Continued focus on product innovation, AI, and cloud transformation, with investments in data center AI capacity and international partner infrastructure.

• Ongoing transformation from license sales to recurring cloud and SaaS revenue, with flexibility for on-premises and hybrid models.

• Profitability in 2024/25 will be impacted by growth investments, personnel expansion, and inflation-related salary increases.

• Proposed dividend of €0.10 per share for the year.