Matrix IT (MTRX) Q1 2024 earnings summary

Executive summary

• Q1 revenue rose 12.6% organically to NIS 1,453.7m; operating profit reached a record NIS 110.7m, up 9.1%.

• Net income reached a record NIS 71.4m, up 9.3%; net income attributable to shareholders increased 13% to NIS 68.6m.

Financial highlights

• Gross profit increased 9.8% to NIS 207.1m; gross margin was 14.2%, versus 14.6% a year earlier.

• EBITDA rose 5.9% to NIS 157.5m, with a 10.8% margin versus 11.5%; adjusted EBITDA excluding IFRS 16 lease effects grew 7.7% to a record NIS 124.8m.

• Diluted EPS rose to NIS 1.09 from NIS 0.96; net financing costs declined 1.8% to NIS 16.6m.

Segment performance

• Israeli IT solutions, services, consulting and management revenue rose 7.9% to NIS 794.3m; operating profit increased 13.6% to NIS 61.6m.

• US revenue grew 10% to NIS 118.7m; operating profit rose 15.4% to NIS 17.0m and margin expanded to 14.3% from 13.6%.

• Cloud and computing infrastructure revenue increased 16.7% to NIS 437.8m; operating profit rose 19.3% to NIS 27.6m.

• Software marketing and support revenue grew 55.8% to NIS 97.4m; operating profit rose 40.5% to NIS 7.4m, while margin fell to 7.6% from 8.4% on transaction mix.

• Training and implementation revenue declined 7.9% to NIS 47.1m; operating profit fell 74.1% to NIS 1.7m amid weak demand and war-related effects.