Making Science Group (MAKS) Q3 2024 earnings summary

Executive summary

• Achieved recurring EBITDA of €10.6M in 9M 2024, up 94% year-over-year, with revenue of €194M (+12.9%) and gross margin of €52.1M (+14.5%).

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

• Expanded international presence to 15 countries, with over 1,200 employees and 850+ customers.

• Strategic focus on cash flow, debt reduction, proprietary AI solutions, and new contracts, including Google Reseller status in the US.

• Secured financing agreements with SOPEF, enabling up to €40M investment in subsidiaries over two years.

Financial highlights

• 9M 2024 consolidated revenue grew 12.9% year-over-year to €194M; gross margin up 14.5% to €52.1M; recurring EBITDA up 94% to €10.6M.

• Core business revenue increased 12.9% to €185.5M, gross margin up 14.2%, recurring EBITDA up 87.3% to €10.1M.

• Spain segment revenue €103.8M (+7.8%), gross margin €25.6M (+11.3%), recurring EBITDA €7.1M (+107.6%).

• International segment revenue €81.7M (+20.1%), gross margin €23.5M (+17.5%), recurring EBITDA €3.0M (+52.3%).

• E-commerce & products segment revenue €8.5M (+13%), gross margin €3.1M (+19%), recurring EBITDA €0.5M (+€416K).

Outlook and guidance

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

• 9M 2024 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 20–24% CAGR from 2022.