Gofore (GOFORE) Q2 2024 earnings summary

Executive summary

• Adjusted EBITA margin improved to 12.7% in Q2 2024, with profitability focus amid challenging market conditions and flat or modest net sales growth.

• Public sector net sales grew faster than private sector, now representing 59% of Q2 net sales, while private sector sales declined.

• Utilization rates and customer satisfaction increased, with Net Promoter Score peaking in spring 2024.

• Fierce price competition and customer savings, especially in the DACH region, negatively impacted growth and pricing.

• International sales, particularly outside the DACH area, declined more than domestic sales.

Financial highlights

• Q2 2024 adjusted EBITA: €6.1m (12.7% margin), up from €5.4m (11.3%) year-over-year.

• H1 2024 adjusted EBITA: €12.9m (13.2% margin), down from €13.7m (14.2%) year-over-year.

• Q2 net sales: €48.0m (+0.9% y/y); H1 net sales: €97.2m (+0.5% y/y).

• Cash flow from operations in H1: €14.4m, up from €11.4m year-over-year.

• Cash and cash equivalents at period end: €41.0m.

Outlook and guidance

• No revenue or profit guidance provided for 2024; recovery from the weak cycle will be gradual.

• Public sector IT investments to continue moderate growth; private sector investments expected to pick up with economic recovery.

• Price competition and customer savings to persist, especially in the DACH region.

• Long-term targets remain: 15% adjusted EBITA margin and at least 15% annual organic growth over the cycle.