Making Science Group (MAKS) Q2 2024 earnings summary

Executive summary

• Achieved €7.3M recurring EBITDA in H1 2024, up 97% year-over-year, with revenue of €124.8M (+10%) and gross margin of €35.7M (+20%), driven by international expansion and operational efficiencies.

• Core business revenues grew 9% to €119.2M, with recurring EBITDA up 88% to €7.0M compared to H1 2023.

• Spain and international segments delivered double-digit gross margin and EBITDA growth; Spain's recurring EBITDA up 121%, international up 33% year-over-year.

• Investments segment (Ventis) turned profitable, posting €329K recurring EBITDA (vs. prior loss).

• Strategic focus on profitability, cash flow, debt reduction, cost optimization, and investments in AI and proprietary solutions.

Financial highlights

• Consolidated revenue rose 10% to €124.8M; gross margin increased 20% to €35.7M in H1 2024.

• Recurring EBITDA margin improved to 20.2%–20.4% in H1 2024, reflecting cost control and automation.

• Core business gross margin reached €33.7M (+20%), with Spain contributing €17.6M (+17%) and international €16.1M (+24%).

• Non-recurring costs sharply reduced in H1 2024 compared to prior year.

• Over 80% of income is recurring, billed monthly, supporting high predictability.

Outlook and guidance

• 2024 guidance maintained: revenue €270–290M (+15–23%), gross margin €74–77M (+15–20%), recurring EBITDA €14–15M (+74–86%).

• H1 2024 achieved 46–52% of full-year targets, in line with historical seasonality.

• Plan 2027 targets recurring EBITDA of €23–27M, implying a 20%+ CAGR from 2024–2027.

• US business expected to reach break-even by Q4 2024, with 20 contracts targeted by year-end.

• Focus on organic growth, international expansion (especially USA), and opportunistic acquisitions.