Lemonsoft (LEMON) Q4 2024 earnings summary

Executive summary

• Net sales grew 9.7% year-over-year to EUR 28.9 million in 2024, driven by SaaS growth and acquisitions.

• Adjusted EBIT margin was 22.3%, down from 2023, with adjusted EBIT at EUR 6.4 million versus EUR 7.2 million prior year.

• Major organizational and management changes, including a new CEO, C-level hires, and significant investments in technology and cybersecurity.

• Personnel increased to 228, mainly due to acquisitions of Spotilla, Applirent, and Atmotics Oy.

• Acquisitions expanded product offerings and contributed to revenue.

Financial highlights

• Gross margin improved to 86%–86.4% due to reduced use of external services.

• Recurring revenue grew to 82% of total, with annual recurring revenue at EUR 20.6 million at 2023 year-end.

• SaaS revenue grew 8.5% to EUR 20.8 million; transaction revenue up 45.6% to EUR 3.3 million.

• Consulting sales declined, impacting Q4 net sales growth.

• Cash flow from operating activities increased to EUR 5.4 million.

Outlook and guidance

• Net sales growth guidance for 2025 is 0%-10%, with adjusted EBIT margin forecasted at 18–24% of net sales.

• Profitability expected to be flat or slightly decreasing in early 2025 due to technology transitions, with positive effects anticipated in the second half.

• Market visibility remains low, but a cautiously optimistic outlook is maintained.