Gofore (GOFORE) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 declined by 1.6% year-over-year to €186.2 million, marking the first contraction after over 15 years of growth, but profitability remained strong with a 12.8% adjusted EBITA margin.

• Public sector sales increased, now representing 60% of net sales, while private sector sales declined by 8%.

• The company maintained strong liquidity and avoided layoffs, with improved employer brand and employee experience despite market headwinds.

• New strategy and long-term targets set: €500 million net sales by 2030, 15% adjusted EBITA margin, and at least 40% of annual net profit as dividends.

• Employee count grew slightly to 1,471.

Financial highlights

• Q4 2024 net sales were €49.8 million, down 3.6% year-over-year; adjusted EBITA was €6.7 million (13.4% margin).

• Full-year adjusted EBITA was €23.9 million (12.8% margin), and operating profit (EBIT) was €20.8 million (11.2% margin).

• Earnings per share (EPS) for 2024 was €1.04 undiluted (€1.02 diluted), down from €1.15.

• Cash flow from operations increased to €37.1 million; cash assets at year-end were €56.8 million.

• Equity ratio improved to 62.1% and net gearing was -34.1%.

Outlook and guidance

• No specific revenue or profit guidance provided for 2025.

• Market recovery expected to be gradual and long-term, with continued uncertainty in customer demand.

• Public sector IT investments to continue moderately; private sector digital investments may revive as interest rates decline.

• DACH region remains challenging; price competition and overcapacity persist.

• New customer-centric organization expected to strengthen sales and customer work in the long term.