Loyal Solutions (LOYAL) H2 2024 earnings summary

Executive summary

• Achieved 49.1% year-over-year revenue growth, reaching 97% of the annual budget.

• Gross profit increased by 259% to TDKK 12,313, with gross margin rising from 47% to 58%.

• EBITDA improved by 60% year-over-year to TDKK -5,793, outperforming budget by 29%.

• Operating loss narrowed by 50% to TDKK -8,684, better than budgeted.

• Cash receipts rose 37% year-over-year to TDKK 40,177.

Financial highlights

• Revenue for the year was TDKK 40,092, up from TDKK 26,888 the previous year.

• Annual recurring revenue (ARR) grew 9.4% to TDKK 30,290.

• Staff expenses increased only 1.8% despite strong revenue growth.

• Operating expenses for the year were TDKK 29,156, slightly above budget.

• Net income per share improved to DKK -0.91 from DKK -1.82 year-over-year.

Outlook and guidance

• Forecasts 19% revenue growth to TDKK 47,536 and 31% ARR growth to TDKK 39,600 for 2024/25.

• Expects to achieve positive EBITDA (TDKK +291) and reduce net loss to TDKK -2,662.

• Plans to scale organization only with new client onboarding, maintaining cost discipline.