Making Science Group (MAKS) Q2 2024 earnings summary

Executive summary

• Achieved consolidated H1 2024 revenue of €124.8M, up 9.5–10% year-over-year, with gross margin up 19.8–20% to €35.7M and recurring EBITDA up 97–97.2% to €7.3M, driven by international investments and cost control.

• Core business revenue grew 9.5% to €119.2M, gross margin rose 20% to €33.7M, and recurring EBITDA increased 87.7–88% to €7.0M, reflecting operational efficiencies.

• Spain segment revenue increased 7.5–8% and recurring EBITDA more than doubled to €5.1M (+121%), while international segment revenue rose 12–12.4% and recurring EBITDA grew 33–33.2%.

• Investments segment (Ventis) saw 10.6–11% revenue growth and achieved its best half-year EBITDA of €329k (positive turnaround YoY).

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

Financial highlights

• H1 2024 consolidated revenue: €124.8M (+9.5–10% YoY); gross margin: €35.7M (+19.8–20% YoY); recurring EBITDA: €7.3M (+97–97.2% YoY).

• Core business recurring EBITDA margin improved to 20.4% in H1 2024.

• Spain gross margin up 16.7%, international gross margin up 23.8%.

• Over 80% of service revenues are recurring, billed monthly, supporting revenue predictability.

• Client concentration remains low; top client <3% of gross margin, top 20 clients 37%.

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.

• 2027 plan targets recurring EBITDA of €23–27M, implying a 20–24% CAGR from 2022/2024.

• 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 technology differentiation.