Logo Yazilim (LOGO) Q4 2024 earnings summary

Executive summary

• Achieved sustainable growth and profitability in 2024, with revenue reaching TL 4,084 million, up from TL 3,136 million, and 30% real revenue growth year-over-year.

• Net profit rose to TL 363 million from TL 188 million, with EPS up 76% in real terms and at TL 3.75, supported by a 69% EBITDA increase.

• Recurring revenues reached 80% of total, with SaaS revenues up 26% and now comprising 46% of billed revenues.

• Strategic focus shifted to high-growth Turkish market, with phased sale of Total Soft (Romania) shares and change in consolidation method.

• Share buyback program spent $3.1M, 5% treasury shares cancelled, and share capital reduced from TL 100 million to TL 95 million.

Financial highlights

• Consolidated revenues (Turkey) grew 30% year-over-year; EBITDA up 69% with margin at 37% (2023: 29%).

• Net income increased 94% year-over-year; margin at 9% (2023: 6%).

• Gross profit reached TL 3,939 million, with a gross margin of 96.4%.

• Free cash flow at 428 mn TL, up 235% year-over-year; cash and cash equivalents at year-end were TL 444 million.

• Adjusted EBITDA was TL 1,523 million, up from TL 900 million in 2023.

Outlook and guidance

• 2025 guidance: 7% billed revenue growth, 11% IFRS revenue growth, ~35% EBITDA margin (TMS29 included).

• Management expects continued growth in SaaS and subscription revenues, supported by new fintech initiatives.

• Dividend policy targets up to 55% of distributable profit.

• Macroeconomic assumptions: 2025 year-end inflation 35%, average USD/TRY 39.1 (+19%), EUR/TRY 40.9 (+15%).

• Total Soft expects 2% Euro revenue growth and 23% EBITDA margin in 2025.