Litium (LITI) Q4 2024 earnings summary

Executive summary

• Achieved positive EBIT for 2024, reaching 0.6 MSEK, a 4.0 MSEK improvement year-over-year.

• Annual Recurring Revenue (ARR) grew 5.1% to 72.3 MSEK as of year-end.

• 100% of revenue was recurring, with 82.7% from subscriptions and 17.3% from variable usage.

• EBITDA for the year was 17.4 MSEK, up from 11.5 MSEK in 2023.

• New CEO Martin Billenius appointed, effective February 2025.

Financial highlights

• Net sales increased 5.0% year-over-year to 72.3 MSEK; Q4 net sales up 5.1% to 19.5 MSEK.

• Gross margin for 2024 was 68.4% (69.1% in 2023); Q4 gross margin 69.4%.

• EBITDA margin for 2024 was 24.1%; Q4 EBITDA margin 25.2%.

• Net income for 2024 was 0.7 MSEK (vs. -3.4 MSEK in 2023); EPS 0.04 SEK (vs. -0.21 SEK).

• Cash at year-end was 7.1 MSEK, down from 11.0 MSEK last year.

Outlook and guidance

• Management notes a gradually improving business climate for new deals in target markets.

• Variable revenue growth from existing customers signals increased activity and sales in client markets.

• The company is positioned for continued growth with a solid platform and new leadership.