Growens (GROW) Q2 2024 earnings summary

Executive summary

• Consolidated revenues reached EUR 36.9 million in H1 2024, up 3.6% year-over-year, or 6.8% excluding Datatrics, with Datatrics' sale in October 2023 affecting comparability.

• EBITDA was negative at EUR 0.7 million, impacted by significant investments in Beefree's growth.

• Net earnings for H1 2024 were negative EUR 1.8 million.

• The group paid its first-ever dividend, totaling approximately EUR 10 million.

Financial highlights

• SaaS revenues were EUR 5.7 million, with organic growth exceeding 20% and accounting for 16% of total revenues.

• CPaaS revenues reached EUR 29.8 million, up 1.2% year-over-year, representing 81% of total revenues.

• Gross profit increased by EUR 843k (+11.7%) to EUR 8.0 million, with gross margin at 22%, up from 12% in 2023.

• Recurring revenues grew 19% organically.

• Foreign revenues comprised 79% of total, growing 3.4% (6.9% without Datatrics).

Outlook and guidance

• Guidance for Beefree’s ARR growth remains at $15–18 million by year-end, with confidence in meeting this target.

• Management highlights a period of transition, focusing on innovation, operational efficiency, and product quality.

• Beefree's investment plan aims to consolidate leadership through technological innovation.

• Q3 preview data will be released on October 10.

• Agile Telecom is focused on maintaining margins rather than revenue growth for the remainder of the year.