Growens (GROW) Q4 2024 earnings summary

Executive summary

• FY2024 consolidated revenues reached €74.5M, down 1% year-over-year, with foreign revenues at €58.6M, down 3% year-over-year.

• Beefree business unit posted 23% revenue growth, while Agile Telecom saw a 5% decline, reflecting strategic margin focus.

• Consolidated EBITDA improved to -€0.1M (+80% year-over-year), and gross profit rose 20% to €17.7M, with a 24% margin.

• Net result was a loss of €2.5M, with a proposed extraordinary dividend of €0.38 per share (~€4.8M total).

• Net financial position at year-end was €13M cash, down from €42.1M, mainly due to a €20M extraordinary dividend and investments in Beefree.

Financial highlights

• SaaS revenues grew 23% to €12.6M, now 17% of total revenues; CPaaS revenues declined 5% to €60M, 81% of total.

• Gross profit increased by €2.9M (+19.5% year-over-year), with COGS down 6% and improved incidence on sales.

• EBITDA margin was -0.1%, with Agile Telecom EBITDA at €2M (down 33% year-over-year) and Beefree EBITDA at -€2.8M.

• Earnings before taxes were -€2.7M, impacted by €3.9M in depreciation (+26% year-over-year), mainly from R&D amortization.

• Net financial income was €1.3M, supported by returns on low-risk securities and FX gains.

Outlook and guidance

• Management expects future profitability, supported by ongoing investments in sales, marketing, and R&D, despite current margin pressure.

• The company remains confident in navigating a complex economic and geopolitical environment through adaptability and innovation.