Facephi Biometria (FACE) H2 2024 earnings summary

Executive summary

• Achieved strong double-digit growth in 2024, with significant investments in R&D, infrastructure, and a shift to a SaaS/cloud-based licensing model, supported by global expansion and service diversification.

• Workforce expanded to 273–300, with 70% in tech/product roles, supporting international expansion and technical capabilities.

• Product portfolio diversified with launches such as behavioral biometrics, mule account detection, KYP for airlines, and IDV Suite.

• Major strategic advances included a partnership with HANCOM to boost APAC presence and new client wins in key regions.

• Celebrated ten years on BME Growth, reinforcing investor and partner confidence.

Financial highlights

• Turnover reached €28.9 million in 2024, up 14.8–15% year-over-year; ARR grew 28–28.5% to €28.0 million; TCV increased 49.5–50% to €57.8 million.

• Normalized EBITDA exceeded €1.0 million, up 10–10.4% from 2023, though impacted by one-off expenses and licensing model changes.

• Net financial/bank debt reduced to €4.5 million (15–16% of turnover/ARR), down from 40–60% in prior years.

• Free cash flow improved, with positive cash flow achieved ahead of schedule and cash balance rising to €5.7 million.

• Investment in R&D increased by 10%, supporting innovation and new product development.

Outlook and guidance

• Management expects accelerated, sustained revenue growth and stronger cash flow in 2025, leveraging a robust operational and financial base.

• SaaS expected to represent 70–80% of new contracts in 2025, up from 50% in 2024.

• Expansion in APAC through HANCOM partnership and entry into NORAM, especially Canada, set for 2025.

• EMEA region expected to contribute 7–10% of total revenue in 2025.

• Positive EBITDA and strong cash flow anticipated by end of 2025.