Grupa Pracuj S.A (GPP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached PLN 193m, up 6.5% y/y, with net profit rising 23% to PLN 62m; 9M 2024 revenue totaled PLN 583m, up 5.7% y/y.

• Net profit for 9M 2024 was PLN 164.3m, up 2.6% y/y; adjusted net profit up 12.7% to PLN 180.5m, excluding Beamery Inc. revaluation.

• Growth driven by higher recruitment project volume and pricing in Poland, dynamic expansion in Ukraine, and improved profitability in Germany.

• SaaS segment contributed 26.2% of Q3 revenue, with active customer base and MRR rising.

• Dividend of PLN 2.00 per share (PLN 136.5m total) paid in July 2024, representing a 72.7% payout ratio for 2023.

Financial highlights

• Adjusted EBITDA for Q3 2024 was PLN 94m (49% margin), and for 9M 2024 PLN 270.8m (46.5% margin), both up y/y.

• Operating profit for Q3 2024 was PLN 81.3m, up 12.8% y/y; 9M 2024 operating profit was PLN 234.6m, up 4.9% y/y.

• Net cash from operating activities for 9M 2024 was PLN 216.4m, down 17.9% y/y; cash and cash equivalents at PLN 176.3m.

• Total assets at September 2024 were PLN 1,018m, with equity of PLN 390m; net debt to equity at 0.33.

• Basic EPS for 9M 2024 was PLN 2.35; diluted EPS PLN 2.32.

Outlook and guidance

• Expects 2–4% y/y growth in recruitment projects and 3–6% y/y average price increase in Poland.

• Anticipates double-digit price growth and stable employer activity in Ukraine.

• SaaS segment to see steady growth in active accounts and MRR, with new AI, Big Data, and post-hire solutions planned.

• Economic uncertainty in Germany may temper MRR growth, but SaaS remains resilient.

• AI-driven tools and HR analytics are key innovation areas for further digitalization.