Itera (ITERA) Q4 2023 earnings summary

Executive summary

• Q4 organic revenue grew 8%; adjusted EBIT margin was 9.5%, pressured by lower utilization, fewer working days and investment in Cloud & Application Services.

• FY revenue rose 18% to NOK 871.6m; adjusted EBIT margin was 9.3% excluding NOK 3.0m of optimization costs.

• Demand remained strong in green transition, cloud migration and modernization, data and AI, despite a softer total market.

Financial highlights

• Q4 revenue was NOK 222.1m, up 8% reported and 4% in constant currency; gross profit rose 7% to NOK 206.2m.

• Q4 adjusted EBITDA was NOK 29.5m versus NOK 28.2m; adjusted EBIT was NOK 21.1m versus NOK 19.4m, while reported EBIT was NOK 18.1m versus NOK 19.4m.

• FY revenue was NOK 871.6m, up 18% reported and 12% in constant currency; gross profit rose 19% to NOK 813.7m.

• FY EBITDA was NOK 110.7m; adjusted EBITDA was NOK 113.7m, adjusted EBIT NOK 81.4m and reported EBIT NOK 78.4m.

• Operating cash flow rose 38% to NOK 57.2m in Q4 and 26% to NOK 95.7m for FY; net income from continuing operations was NOK 11.6m in Q4 and NOK 56.7m for FY.

Outlook and guidance

• Underlying demand remained strong across existing and new customers, while the market was weaker than in recent years; the pipeline of opportunities was growing.

• Optimization focused on lower discretionary costs and overhead, adjusted recruitment, higher utilization and stronger sales activity; full effectiveness targets a 1.2–1.6 percentage-point margin improvement.

• 2024 priorities include demand generation, operational excellence, growth in data, Low-Code and AI, and expansion outside the Nordics.

• No market guidance was provided; investment continued in Sweden and Central and Eastern Europe, with readiness for larger cloud transformations and work supporting the green energy shift.