Lectra (LSS) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw 15% revenue growth to €132.7M, driven by recurring revenues and SaaS, despite a challenging macroeconomic environment and cautious customer investment.

• Launchmetrics, consolidated since Jan 2024, contributed €10.8M in Q2 revenues and €1.5M in EBITDA.

• H1 2024 revenues reached €262.3M (+9% YoY), with recurring revenues up 17% and SaaS revenues up 2.6x.

Financial highlights

• Q2 2024 EBITDA before non-recurring items rose 36% to €21.2M (margin 15.9%), with income from operations before non-recurring items up 28% to €10.4M.

• Q2 net income was €4.4M, down from €6.6M in Q2 2023, which included a €2.6M non-recurring gain.

• H1 2024 gross profit was €187.5M (+13% YoY), gross margin 71.5% (+2.4 pts), EBITDA before non-recurring items €42.2M (+20%), and net income €11.1M.

• Free cash flow before non-recurring items for H1 was €28.3M, up from €16.6M in H1 2023.

• As of June 30, 2024, net financial debt stood at €59.0M after the Launchmetrics acquisition payment.

Outlook and guidance

• 2024 guidance confirmed: revenues €480–530M (+2% to +12%) and EBITDA before non-recurring items €85–107M (+10% to +40%) for legacy scope.

• Launchmetrics expected to contribute €42–46M in revenues and >15% EBITDA margin for 2024.

• Full-year results expected at the lower end of guidance ranges due to subdued H1 business.

• Long-term 2025 ambitions: €600M revenues, €400M recurring, €90M SaaS, EBITDA margin >20%.