Gofore (GOFORE) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined by 4.2% year-over-year to €39.1 million, with organic growth at -4.2%.

• Adjusted EBITA margin was 11.2% (11.6%), with profitability slightly down but defended despite market challenges.

• Recruitment increased capacity to the year's highest level, with 1,474 employees at period end.

• Public sector sales grew, now representing 60% of Q3 net sales, while private sector sales declined.

• Major customer wins included Kela's One Application Model project, supporting future business foundation.

Financial highlights

• Q3 adjusted EBITA was €4.4 million (11.2% margin), down from €4.7 million (11.6%) year-over-year.

• Q3 EBITA was €4.9 million, up from €4.5 million, aided by a €0.7 million reversal of eMundo contingent consideration (excluded from adjusted EBITA).

• Q3 operating profit (EBIT) was €4.1 million (10.4% margin), up from €3.4 million.

• Q3 profit for the period was €3.4 million, up from €2.5 million.

• Q1–Q3 2024 net sales were €136.3 million (-0.9% year-over-year), with adjusted EBITA of €17.2 million (12.6% margin).

• Earnings per share (EPS) for Q3 was €0.21 (diluted), up from €0.16.

Outlook and guidance

• No revenue or profit guidance provided; Gofore does not issue forecasts as of February 2022.

• Market demand expected to recover gradually, with positive mid- and long-term digital transformation outlook.

• Public sector digital investments expected to grow moderately in 2024–2025; private sector demand remains cautious but accumulating needs.

• DACH region expected to see positive development next year despite ongoing customer-specific uncertainty.

• Talent market remains favorable, but competition for talent may intensify if industry picks up.