Nedap (NEDAP) Q3 2024 TU earnings summary

Executive summary

• Revenue for Q3 2024 and the first nine months was 7% lower year-over-year, mainly due to declines in Livestock and Security markets.

• Recurring revenue rose 20% year-over-year for the first nine months, now comprising 40% of total revenue.

• Healthcare and Retail segments showed revenue growth in Q3 2024 compared to the same period last year.

Financial highlights

• Q3 2024 revenue declined 7% compared to Q3 2023, with Livestock and Security markets most affected.

• Recurring revenue increased 20% year-over-year for the first nine months.

• Retail segment saw growth in iD Cloud solution adoption, while loss prevention revenue declined.

Outlook and guidance

• Revenue for the second half of 2024 is expected to be in line with the second half of 2023.

• Market and economic improvements, especially in dairy, may boost investment, but timing of revenue impact is uncertain.

• Growth opportunities are anticipated across all key markets, with further details to be shared at Capital Markets Day on 7 November 2024.