Lemonsoft (LEMON) Q2 2024 earnings summary

Executive summary

• Net sales grew 15.3% year-over-year to EUR 13.9 million in H1 2024, with Q2 net sales up 14.0%, mainly due to the Finvoicer acquisition.

• Organic growth turned positive, with recurring revenue organic growth outpacing overall organic growth.

• Profitability declined: adjusted EBIT margin was 17.7% (24.8%) and profit for the period fell 31.4% to EUR 1.3 million.

• Two acquisitions (Atmotics Oy/Spotilla and Applirent Oy) completed in July 2024, expanding offerings in maintenance, field service, and rental management.

• SaaS income share decreased to 71.6% as transaction income rose.

Financial highlights

• Q2 2024 net sales increased 14.0% to EUR 7.0 million; H1 net sales up 15.3% to EUR 13.9 million year-over-year.

• Recurring revenue comprised 83% of Q2 total; SaaS revenue was 71.6% of H1 net sales.

• Adjusted EBITDA for H1 was EUR 3.0 million (21.5% of net sales); adjusted EBIT for H1 was EUR 2.5 million (17.7%).

• Gross margin slightly decreased to 86.0% (87.0%) for H1.

• Cash flow from operating activities improved to EUR 2.7 million in H1.

Outlook and guidance

• Net sales for 2024 expected to increase by 10–18% over 2023; adjusted EBIT margin forecast at 23–28%.

• Organic growth anticipated to improve in H2 2024, though economic conditions may restrain new sales.