Nodebis Applications (NODE) Q3 2024 earnings summary

Executive summary

• Net sales for Jan–Sep 2024 increased by 13% to 42,587 tkr compared to 37,729 tkr last year; Q3 sales were 13,458 tkr, up from 13,133 tkr.

• Recurring contract revenues rose to 63% of total sales in the first nine months, up from 56% year-over-year.

• Both OSS and BIS segments posted positive operating results; OSS showed strong growth and margin improvement, while BIS was impacted by a weaker economy.

• Nodebis signed an agreement to acquire 51.96% of Risk Information Group AS, expanding into identity verification and compliance.

Financial highlights

• Operating income for Jan–Sep was -61 tkr, down from 103 tkr; Q3 operating income was 176 tkr, down from 246 tkr.

• Profit before tax for Jan–Sep was 2,183 tkr, up from 467 tkr; Q3 profit before tax was 180 tkr, down from 799 tkr.

• EPS for Jan–Sep was 0.33 kr (vs. -0.04 kr); Q3 EPS was 0.03 kr (vs. 0.10 kr).

• EBITDA margin for Jan–Sep was 5.4% (5.5% last year); Q3 EBITDA margin was 7.5% (6.8%).

• Cash flow from operations for Jan–Sep was 4,075 tkr, down from 7,533 tkr.

• Cash and cash equivalents at period end were 13,868 tkr, down from 20,360 tkr.

Outlook and guidance

• Focus remains on strengthening and expanding offerings in vehicle administration and digital decision support, as well as growth through acquisitions.

• Future investments will target digitalization services for decision support and resource optimization, especially for mobile resources in defined business segments.