Hightech Payment Systems (HPS) H2 2024 earnings summary

Executive summary

• 2024 was a record year with accelerated SaaS adoption, onboarding three new Top 100 banks, and successful CR2 acquisition, expanding global reach and product capabilities.

• Strategic investments in SaaS platforms, local teams, and infrastructure impacted short-term profitability but are expected to enhance resilience and predictability from 2025.

• SaaS contracts represented 93% of TCV in 2024, driving a shift to recurring revenue.

• CR2 integration added €7M revenue in 2024 and is projected to contribute €30M in 2025 with a 15–18% EBITDA margin.

• Expanded global presence with new offices and hubs in Canada, India, Australia, and reinforced Tier 1 bank customer base.

Financial highlights

• Consolidated revenue reached 1,267 MMAD (up 6.4% year-over-year); recurring revenues rose 11.8% to 904.3 MMAD, now 74% of total revenue.

• Reported EBITDA declined to 219.8 MMAD (margin 17.3%), but adjusted EBITDA rose 28.5% to 317 MMAD, reflecting SaaS transition effects.

• Operating profit fell to 153.6 MMAD (12.1% margin), and net margin decreased to 6.0%.

• Backlog grew 7.8% to 885 MMAD, with 74% recurring revenue.

• Year-end cash position was 204 MMAD, impacted by CR2 acquisition and SaaS investments.

Outlook and guidance

• 2025 revenue growth expected between 20% and 30%, EBITDA growth between 30% and 35%, driven by SaaS ramp-up and CR2 synergies.

• By 2026/2027, SaaS transition impact should subside, with significant EBITDA from 2024 SaaS contracts.

• CR2 projected to deliver €30M revenue and 15–18% EBITDA margin in 2025.

• Dividend of MAD 7 per share proposed for 2024.

• Reaffirmed 2027 targets: revenue $220m–$300m, EBITDA margin 25–30%, and 60% recurring revenue.