Heeros (HEEROS) Q2 2024 earnings summary

Executive summary

• Q2 and H1 2024 delivered outstanding results, with EBITDA up 94% in Q2 and 65% for the half year, marking record profitability driven by cost-saving measures and operational efficiency.

• Operating cash flow increased 51% in H1 2024, and net profit turned positive, supported by improved margins and cost controls.

• Revenue was stable at €5.6 million, with recurring revenue representing 95% of total revenue.

• Sales momentum improved, with Q2 order intake at EUR 330,000, over 100% growth year-on-year, and new ARR orders up 20% to €430 thousand in H1.

• Profitability improved significantly, with adjusted EBITDA margin at 26% in H1 2024 (H1 2023: 16%).

Financial highlights

• Q2 EBITDA up 94% year-over-year to €878 thousand (30% margin); H1 EBITDA up 65% to €1.46 million (26% margin).

• Q2 2024 revenue grew 1% year-over-year to €2.9 million; H1 revenue was €5.6 million, down 0.4%.

• Contract revenue grew by 6% in Q2 and 4% for H1, while transaction revenue, 70% of total, declined 16% in Q2 and 9% for H1.

• Operating profit (EBIT) for H1 was €300 thousand, up from a €269 thousand loss in H1 2023; net income for H1 was €235 thousand, compared to a €323 thousand loss a year earlier.

• Operating cash flow for H1 increased 51% to €1.35 million.

Outlook and guidance

• Profitability is expected to continue improving throughout 2024, with revenue and EBITDA anticipated to exceed 2023 levels.

• Q3 revenue growth will be modest due to lag between sales and implementation, but Q4 and 2025 are expected to be strong.