Matrix IT (MTRX) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 6.4% to NIS 1,418.8M; adjusted for net-basis revenue recognition, growth was 11.3%. Operating profit rose 16% to NIS 108.2M and net income 22.8% to NIS 69.7M.

• 9M revenue increased 7.5% to NIS 4,205M, or 10% adjusted; operating profit rose 12.9% to NIS 330.1M and net income 15.8% to NIS 214.2M.

• Revenue growth was organic; 9M revenue and operating profit reached records.

Financial highlights

• Q3 gross profit rose 9.6% to NIS 205.0M; 9M gross profit increased 9.5% to NIS 614.0M.

• Q3 net income attributable to shareholders was NIS 64.4M vs. NIS 51.4M; 9M attributable earnings were NIS 202.5M vs. NIS 170.8M.

• Adjusted EBITDA excluding IFRS 16 rose 11.2% to NIS 122.1M in Q3 and 9.1% to NIS 371.4M in 9M.

• 9M basic and diluted EPS were NIS 3.19 vs. NIS 2.69; Q3 EPS was NIS 1.01 vs. NIS 0.81.

Outlook and guidance

• New US bank and GRC engagements are expected to contribute revenue and profit from early 2025.

• Several M&A transactions were planned for 2024 to accelerate growth and broaden customer offerings.

• Further continuation or escalation of the war could significantly harm Israel’s economy and operations; assessments are subject to substantial uncertainty.

• IFRS 18 is scheduled to apply from 1 January 2027; its presentation and disclosure impact remains under assessment.