Fortnox (FNOX) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 reached SEK 2,045 million, up 25% year-over-year, with Q4 net sales at SEK 540 million, up 20% and EBIT at SEK 254 million, up 36%.

• Customer base grew by 62,000 for the year, totaling 598,000 at year-end, with ARPC at SEK 298, aligning with 2025 targets.

• EBIT margin was 47% in Q4 and 43% for the full year; adjusted for one-offs and acquisitions, margins were 42% and 44% respectively.

• Organizational restructuring announced to enhance scalability, focusing on core business flows and integrated payment solutions.

• Board proposes a dividend of SEK 0.25 per share, a 25% increase, totaling SEK 152 million.

Financial highlights

• Organic growth for the year was 25%, with acquisitions contributing 1 percentage point.

• Subscription-based revenues grew 14%, transaction-based 30%, and lending-based 41% year-over-year in Q4.

• Free cash flow (adjusted for lending and acquisitions) was SEK 763 million for the year and 217 MSEK in Q4, remaining stable.

• Cash and cash equivalents at year-end: SEK 810 million, up from SEK 514 million.

• Equity/assets ratio improved to 70% from 67% year-over-year; equity at year-end: SEK 2,362 million, up 33%.

Outlook and guidance

• Focus will intensify on increasing usage and ARPC, leveraging organizational changes effective January 1, 2025.

• Price adjustments in 2024 contributed over 5 percentage points to full-year net sales growth and 8 points in Q4.

• ARPC target expected to be met, but number of subscription customers may fall slightly below the 2025 goal.

• New internal structure from January 2025 to enhance scalability and growth, with two business areas: Business Platform and Financial Services.

• No clear signs of improvement in the Swedish economy yet; transaction volumes remain subdued.