Lemonsoft (LEMON) Q3 2024 earnings summary

Executive summary

• Net sales grew 7.2% to EUR 7.3 million in Q3 and 12.3% to EUR 21.2 million for Jan–Sep 2024, driven by acquisitions and recurring revenue growth.

• Adjusted EBIT margin in Q3 was 33.9%, with integration of recent acquisitions and major technology projects underway.

• Customer churn declined, but new user growth remained moderate due to a challenging business environment.

• Cloud migration and e-invoicing partner change expected to yield long-term cost savings.

Financial highlights

• Q3 EBITDA was EUR 2.6 million (35.2% margin), adjusted EBITDA EUR 2.8 million (37.6% margin).

• Jan–Sep EBITDA was EUR 5.6 million (26.1% margin), adjusted EBITDA EUR 5.7 million (27.0% margin).

• Q3 profit was EUR 1.75 million (24.0% of net sales); Jan–Sep profit was EUR 3.1 million (14.5% of net sales).

• Cash flow from operating activities was EUR 464 thousand in Q3 and EUR 3.1 million for Jan–Sep.

• Equity ratio at period end was 59.2%; net debt increased to EUR 5.5 million.

Outlook and guidance

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