NNIT (NNIT) Q2 2024 earnings summary

Executive summary

• Achieved 11.8% year-over-year revenue growth to DKK 474 million in Q2 2024, with improved profitability and strategic progress across key regions, including new ERP/HR systems and nearing completion of IT separation from Aeven.

• Market share gains in Denmark and Europe, with Asia returning to growth and profitability; US region faced headwinds from data migration business.

• Secured significant strategic contracts, including the largest US deal to date worth DKK 130 million, supporting future growth.

• Confirmed full-year outlook for around 10% organic revenue growth and 8–9% operating profit margin (excl. special items).

• High customer satisfaction and continued focus on commercial resilience and internal metrics.

Financial highlights

• Q2 2024 revenue: DKK 474 million, up 11.8% year-over-year; organic growth at 11%.

• Group operating profit (excluding special items) rose to DKK 32 million, margin increased to 6.7% from 5.9%.

• Gross margin improved to 29.4% from 24.3% in Q2 2023.

• Free cash flow was -DKK 262 million, with net cash flow at -DKK 91 million, mainly due to non-recurring working capital changes.

• Net profit for H1 2024: DKK 34 million (H1 2023: DKK 96 million, including discontinued operations).

Outlook and guidance

• Full-year 2024 outlook confirmed: organic revenue growth around 10% and operating profit margin (excl. special items) between 8% and 9%.

• Growth expected to be single-digit in Q3 and double-digit in Q4, with profitability improving quarter by quarter.

• Five key levers for H2 include contract wins, Asia turnaround, data migration business rightsizing, completion of internal projects, and office relocations.