Lectra (LSS) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 reached €394.2m, up 10% year-over-year, with Q3 revenues at €131.9m, up 11% compared to Q3 2023.

• EBITDA before non-recurring items grew 16% to €68.5m for the nine months, with Q3 EBITDA at €26.2m, up 10% year-over-year.

• Growth was driven by the integration of Launchmetrics and improved fundamentals, despite a challenging macroeconomic and geopolitical environment.

• 95% of fixed costs covered by recurring activity, highlighting resilience in the business model.

Financial highlights

• Gross profit for the first nine months was €281.6m, up 13% year-over-year, with a gross margin of 71.4%, up 1.7 percentage points.

• Net income for the nine months was €21.2m, compared to €24.9m in 2023, which included a €2.6m non-recurring gain.

• Free cash flow before non-recurring items rose to €49.9m, up from €32.1m in the prior year period.

• Recurring revenues grew 8% to €143.9m; SaaS software subscriptions up 28% year-over-year.

Outlook and guidance

• Full-year 2024 revenues and EBITDA before non-recurring items are expected at the lower end of the previously indicated ranges.

• 2025 ambitions include €600m in revenues, €400m in recurring revenues, €90m in SaaS revenues, and EBITDA margin above 20%.

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

• Medium-term outlook supported by strong recurring revenues, R&D investments, and a robust security ratio covering 95% of fixed costs.