GFT Technologies (GFT) Q2 2024 earnings summary

Executive summary

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

• Sophos acquisition completed in February 2024, adding 1,556–1,600 employees and expanding Latin American market access, contributing €24.5–€55 million in revenue.

• Order backlog increased 19%, supported by Sophos, providing strong visibility and backing revised guidance.

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

• Headcount grew 18–20% since year-end 2023, mainly due to the Sophos acquisition.

Financial highlights

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

• Adjusted EBIT: €35.7–36 million (+15%); adjusted EBIT margin improved to 8.3–8.4%.

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

• EBT stable at €30–30.1 million, with higher interest and amortization from M&A.

• 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% year-over-year), down from €905 million; adjusted EBIT expected at €82 million (+12%), EBT at €70 million.

• Guidance assumes no further exceptional items in H2; expects sequential quarterly revenue growth of 3%.

• Utilization rates targeted at 91%+ in H2, with most capacity adjustments completed.

• Positive business trend expected to continue in H2 2024, supported by digitalisation and AI demand.