Itera (ITERA) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue declined 4% year-over-year to NOK 212.2 million, mainly due to market challenges and a major customer loss, though the customer was regained mid-quarter.

• Adjusted EBIT margin was 5.6% in Q4, impacted by a NOK 4.4 million write-off from a partnership investment; full-year adjusted EBIT margin was 6.2%.

• Strong order intake with a Q4 book-to-bill ratio of 1.4 and new three-year framework agreements, supporting improved sales activity and pipeline visibility.

• Expansion included a new office in Rogaland, strategic acquisitions, and the launch of Enter Ukraine with Itera, contributing to new business opportunities.

• Employee count was right-sized, ending 2024 with 725 employees, down by 33 over the year.

Financial highlights

• Q4 operating revenue was NOK 212.2 million, a 4% decrease year-over-year; full-year revenue was NOK 849.1 million, down 3%.

• Adjusted EBITDA margin in Q4 was 9.4% (down from 13.3%); reported EBIT for the quarter was NOK 7.5 million after a write-off.

• Cash flow from operations was NOK 45.3 million in Q4 and NOK 73.7 million for 2024; EBITDA-to-cash conversion was 91% for the year.

• Earnings per share for the year was NOK 0.43; total dividend paid in 2024 was NOK 0.60 per share.

• Share price ended Q4 at NOK 8.94, down 21% from end of 2023, including dividends.

Outlook and guidance

• Market conditions are showing signs of normalization, with growth opportunities in energy and public sector, while banking and insurance remain soft.

• Pipeline visibility and order intake are strong, supporting optimism for 2025.

• Expansion in Sweden, Rogaland, and the Enter Ukraine initiative are expected to drive future growth.

• Focus remains on balanced, profitable growth, cash flow, and leveraging opportunities in cloud transformation and AI.

• Gradual improvement in billable utilisation and sales pipeline observed in Q4.