Nemetschek (NEM) Q4 2024 earnings summary

Executive summary

• Achieved or exceeded all financial goals for 2024, with strong operational performance, robust revenue and ARR growth, and a record share of recurring revenues driven by successful SaaS transition.

• Marked significant milestones: 25th IPO anniversary, largest-ever acquisition (GoCanvas), and continued investments in innovative start-ups.

• Strengthened international presence, notably with a new office in India, and enhanced operational excellence through process harmonization.

• Strategic focus on AI, sustainability, international expansion, and M&A.

Financial highlights

• FY 2024 revenues rose 16.9% to €995.6 million; organic growth 14%.

• GoCanvas acquisition added ~300 basis points to revenue growth.

• ARR grew 41.9% to €1,019.9 million; organic ARR growth 34.6%.

• EBITDA increased 16.8% to €301 million; reported EBITDA margin at 30.2%, organic margin at 31.1%.

• Recurring revenue share reached a record 87% of total revenue.

• Q4 revenues up 32.5% to €290.9 million; Q4 EBITDA up 37.4% to €95.1 million.

• EPS increased 9.6% year-over-year, impacted by GoCanvas-related amortization and interest.

• Equity ratio at 44.2%; net debt at €295 million.

• Free cash flow (before M&A): €293.5 million, up 22%.

Outlook and guidance

• 2025 guidance: currency-adjusted revenue growth of 17%-19% (including GoCanvas), with ~350 basis points from M&A.

• Expected EBITDA margin around 31%, including GoCanvas dilution.

• Double-digit organic growth targeted for coming years, with mid-teens average growth potential.

• Margin expansion to be gradual, with continued investment in innovation, AI, and internationalization.