Fortnox (FNOX) Q2 2024 earnings summary

Executive summary

• Achieved 27% year-over-year growth in Q2 2024, with net sales reaching SEK 515 million and customer base expanding by 16,000 to 572,000, despite macroeconomic headwinds.

• EBIT margin remained strong at 39%, with operating profit surpassing SEK 200 million for the first time.

• ARPC increased to SEK 285, with SEK 39 contributed by financial services, nearing the SEK 300 target for 2025.

• Rule of 40 (growth + margin) reached 67%, maintaining above 65% for 13 consecutive quarters.

• Continued product innovation and digitalization, supported by new Swedish legislation enabling fully digital accounting.

Financial highlights

• Net sales for Q2 2024 were SEK 515 million, up 27% year-over-year; EBIT was SEK 203 million, up from SEK 157 million in Q2 2023.

• Invoice factoring product grew 79% year-over-year, with high margins.

• Cash conversion improved due to reduced capitalized development costs.

• Equity/assets ratio at 66%, up from 59%.

• Q2 profit after tax: SEK 164 million (up 29%); Q2 EPS: SEK 0.27 (up 29%).

Outlook and guidance

• Management targets over 700,000 customers and ARPC above SEK 300 by 2025, with focus on user growth, product innovation, and digital workflow adoption.

• Net customer additions are planned to accelerate, especially in the micro-segment and through improved accountant workflows.

• The new joint venture for marketplaces is expected to close in Q4 2024, with no significant financial impact anticipated.