FormPipe Software (FPIP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached SEK 141 million, up 3% year-over-year, with SaaS revenue growing 27% and recurring revenue now over 80% of total sales, supporting stability.

• Adjusted EBIT for Q4 was SEK 7 million, down from SEK 17 million last year, impacted by SEK 4.7 million in one-off cyberattack costs and higher operating expenses.

• Cost-saving measures, including staff reductions in Lasernet, are being implemented to improve profitability and support future growth.

• The company faced a cyberattack in October, incurring SEK 4.7 million in one-off costs, but has since strengthened cybersecurity and resumed normal operations.

• Dividend policy maintained, with a proposed dividend of SEK 0.50 per share, unchanged from the prior year.

Financial highlights

• Net sales increased 3% year-over-year to SEK 141 million in Q4; full-year net sales up 1% to SEK 529 million.

• Recurring revenue for the rolling 12 months reached SEK 428 million, up 12% year-over-year, and now exceeds 80% of total revenue.

• Outgoing ARR stands at SEK 459 million, up 13% from last year.

• Q4 EBITDA margin was 17.7%; Q4 EBIT margin dropped to 2% (from 13%); full-year EBIT margin at 5% (down from 9%).

• Net profit for Q4 was SEK 3 million, down 83% year-over-year; full-year net profit SEK 17 million, down 54%.

Outlook and guidance

• Focus remains on cost calibration, especially in Lasernet, and achieving improved EBIT momentum by autumn 2025.

• Continued investment in SaaS and cloud competencies, with new hires in engineering and sales.

• New SaaS offerings and Microsoft integrations to be piloted in Q1 2025, with broader rollout later in the year.

• Financial targets for 2021-2025 include 10% average annual revenue growth, >70% recurring revenue share, and >20% EBIT margin by 2025.