Heeros (HEEROS) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 performance, exceeding full-year targets in new sales and profitability despite a decline in transaction volumes impacting revenue growth.

• Revenue grew 1% year-over-year to €11.4 million, with improved profitability, cash flow, and new sales compared to 2023.

• Adjusted EBITDA increased 10% to €2.9 million, representing 26% of revenue.

• Net income rose to €619 thousand from €177 thousand, and operating cash flow surged 86% to €3.8 million.

• Accountor Finago Oy made a recommended public cash tender offer for all shares and options in November 2024.

Financial highlights

• Q4 revenue rose 3% year-over-year to €2.9M; full-year revenue up 1% to €11.4M.

• Q4 EBITDA dropped 80% to €0.2M due to one-off restructuring and tender offer costs; adjusted EBITDA for Q4 down 27% to €0.6M.

• Full-year adjusted EBITDA increased 10% to €2.9M; EBITDA-Cash up 39% to €1.75M.

• Operating profit (EBIT) up 156% to €749 thousand; adjusted EBIT up 117% to €1.0 million.

• Earnings per share (EPS) at €0.12 (diluted €0.11); equity ratio 70%, ROE 8%.

Outlook and guidance

• No financial guidance for 2025 due to the pending Accountor Finago Oy tender offer.

• Management highlights improved sales execution and expects continued focus on EBITDA-Cash improvement.

• Management sees strong positioning for 2025, with readiness to pursue growth and profitability opportunities.

• Order intake for ARR in Q4 was €199K, up 77% quarter-on-quarter and 28% year-over-year, indicating positive momentum for future growth.