Lectra (LSS) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues reached €262.3M, up 9% year-over-year, driven by recurring revenues, SaaS, and the integration of Launchmetrics.

• Q2 2024 revenues rose 15% to €132.7M, with Launchmetrics contributing €10.8M in Q2 revenues and €1.5M in EBITDA.

• EBITDA before non-recurring items increased 20% to €42.2M in H1 2024, with margin up to 16.1%.

• Net income for H1 2024 was €11.1M, compared to €13.9M in H1 2023, which included a €2.6M non-recurring gain.

• Free cash flow before non-recurring items surged to €28.3M from €16.6M in H1 2023.

Financial highlights

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

• H1 2024 gross profit was €187.5M (+13% YoY), gross margin 71.5% (+2.4 pts), and EBITDA margin before non-recurring items was 16.1%.

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

• Share price at June 30, 2024: €27.55, down 11.8% YTD; market cap €1.04B.

• Shareholders’ equity: €333.6M as of June 30, 2024.

Outlook and guidance

• 2024 guidance confirmed: revenues €480–530M and EBITDA before non-recurring items €85–107M for the legacy business.

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