NOVOTEK (NTEK) Q3 2024 earnings summary

Executive summary

• Revenue for January–September 2024 increased to 344.1 MSEK from 292.0 MSEK year-over-year, with operating income rising to 40.2 MSEK from 22.7 MSEK.

• Net income for the period was 31.1 MSEK, up from 15.8 MSEK year-over-year.

• Earnings per share reached 2.8 SEK, compared to 1.5 SEK in the same period last year.

• The company acquired 70% of Austrian Taschek & Gruber Automatische Datenverarbeitungs gmbH (T&G), expanding its presence in the DACH region.

• Revenue recognition principles were adjusted in line with ESMA guidance, now treating software sales as agent transactions.

Financial highlights

• Q3 2024 revenue was 118.4 MSEK, up from 95.4 MSEK in Q3 2023; operating income was 13.1 MSEK, up from 7.2 MSEK.

• Order intake for January–September 2024 was 394.9 MSEK, up from 348.4 MSEK year-over-year.

• Cash flow from operations for the nine months was 46.8 MSEK, compared to 26.5 MSEK last year.

• Soliditet (equity ratio) at period end was 35.5%, down from 43.1% a year earlier.

• Net cash position was 96.4 MSEK at period end.

Outlook and guidance

• Macroeconomic uncertainty continues to delay customer decisions on large projects, but interest in Novotek's solutions remains strong, especially in digitalization.

• The company expects continued strong demand for its offerings, with digital transformation trends supporting growth.