Lime Technologies (LIME) Q3 2024 earnings summary

Executive summary

• Achieved 18% sales growth, 28% ARR growth, and a 25% EBITA margin in Q3 2024, reflecting strong recurring revenue and continued investment in future growth despite challenging market conditions.

• Maintains a diversified and sticky customer base with over 1,000,000 users and 7,500 customers across 7 countries.

• Onboarded over 30 new employees in Q3 to support future growth and international expansion.

• Focused on long-term profitable growth, recurring revenue, and a strong corporate culture.

• Notable new deals in Finland, Germany, and Sweden, with continued expansion in Sweden and Europe.

Financial highlights

• Q3 net sales reached SEK 158.1m, up 18% year-over-year; LTM net sales totaled SEK 656.5m, also up 18%.

• Q3 EBITA margin was 25%, with adjusted EBITA of SEK 39.3m, up 16% year-over-year.

• Recurring revenue represented 64% of total revenue, driven by a shift to subscription pricing.

• Subscription revenue grew 31% year-over-year; ARR at Q3-end was SEK 454m, up 28%.

• Dividend payout at 56% of net profit, with SEK 3.50 per share distributed.

Outlook and guidance

• Management targets annual net sales growth above 18% and EBITA margin above 25% in the medium term.

• Positive signals in customer engagement and pipeline development are expected to support momentum into Q4 and 2025.

• Continued prioritization of growth over profitability, with ongoing investments in international expansion and product development.

• Expert Services expected to see increased project starts and improved momentum.