GFT Technologies (GFT) Q2 2024 earnings summary

Executive summary

• Revenue grew 11% year-over-year to €430 million in H1 2024, with adjusted EBIT up 15% to €36 million, driven by M&A, digital transformation demand, and strong performance in Brazil and continental Europe.

• Sophos acquisition expanded Latin American presence, added €55 million revenue and 1,556–1,600 employees, and is progressing well with full integration expected by Q1 2025.

• Order backlog increased 19%, mainly due to Sophos, supporting revised guidance.

• GFT recognized as a leader in data analytics, AI, and integration services, winning multiple awards.

• Headcount grew 18–20% since year-end 2023, mainly from Sophos.

Financial highlights

• H1 2024 revenue: €429.6 million (+11% year-over-year); organic growth 1–2%, M&A 9%, FX 1%.

• Adjusted EBIT: €35.7–36 million (+15%); adjusted EBIT margin improved to 8.3%.

• EBITDA: €44.4 million (+10%); EBT stable at €30–30.1 million.

• Net income: €21.2 million (+1%); EPS: €0.81.

• Net cash position declined to -€108.3 million due to Sophos acquisition and working capital effects.

Outlook and guidance

• FY2024 revenue guidance revised to €885 million (+12%), with €55 million from Sophos; adjusted EBIT expected at €82 million (+12%); EBT at €70 million.

• Guidance assumes 3% sequential quarterly revenue growth in H2; no exceptional items factored into H2 guidance.

• Guidance was reduced from previous targets due to market uncertainties and integration costs.