Making Science Group (MAKS) Q3 2024 earnings summary

Executive summary

• Achieved strong growth in Q3 and 9M 2024, with revenue up 12.9% to €194M, gross margin up 14.5% to €52.1M, and recurring EBITDA up 94% to €10.6M year-over-year.

• Profitability driven by operational leverage, cost control, and international expansion, especially in France, Nordics, Italy, and the USA.

• Expanded client base, secured major new contracts, and obtained Google Reseller status in the US.

• Entered a strategic financing agreement with SOPEF, enabling up to €40 million investment in the Marketing & AdTech business line over the next two years.

• Maintained high revenue predictability, with 80–85% of service revenues under recurring fee models.

Financial highlights

• 9M 2024 consolidated revenue rose 12.9% to €194M; gross margin up 14.5% to €52.1M; recurring EBITDA up 94% to €10.6M compared to 9M 2023.

• Core business revenue grew 12.9% to €185.5M; gross margin up 14.2% to €49.1M; recurring EBITDA up 87% to €10.1M.

• Spain segment revenue up 7.8% and recurring EBITDA up 108%; international segment revenue up 20.1% and recurring EBITDA up 52% year-over-year.

• E-commerce & products segment revenue up 12.8%, gross margin up 19.3%, and recurring EBITDA improved to €478K.

• Q3 2024 recurring EBITDA for core business increased 86.5% year-over-year.

Outlook and guidance

• 2024 guidance maintained: revenue €270–290M (15–23% growth), gross margin €74–77M (15–20% growth), recurring EBITDA €14–15M (74–86% growth), EBITDA/gross margin ratio 18.9–19.5%.

• 9M24 progress: 71.8% of revenue, 70.4% of gross margin, and 76.4% of recurring EBITDA guidance achieved.

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