Growens (GROW) Q3 2024 earnings summary

Executive summary

• 9M 2024 revenues reached €54.7M, stable year-over-year (+0.1%), with Q3 revenues at €17.8M, down 11% from Q3 2023.

• Gross profit for 9M 2024 was €12.7M, up 23% year-over-year, with a margin above 23%.

• EBITDA for 9M 2024 was -€0.5M, impacted by increased S&M and R&D investments in Beefree; Q3 EBITDA was €0.2M, reflecting margin recovery at Agile Telecom.

• SaaS (Beefree) posted 22% revenue growth, while CPaaS (Agile Telecom) declined 5% year-over-year.

Financial highlights

• SaaS revenues for 9M 2024 were €8.9M (+22% year-over-year); CPaaS revenues were €44.3M (-5%).

• Q3 2024 SaaS revenues grew 24% to €3.2M; CPaaS revenues fell 16% to €14.5M.

• Gross profit margin for 9M 2024 was 23.2%; Q3 2024 gross profit margin was 26.1%.

• EBT from continuing operations for 9M 2024 was -€2.5M.

• Foreign revenues represented over 82% of total sales, stable year-over-year.

Outlook and guidance

• Continued focus on Beefree's development, with significant S&M and R&D investments expected to impact margins in the near term.

• Beefree's repricing and product development are expected to drive future growth.