NV5 Global (NVEE) Q4 2023 earnings summary

Executive summary

• FY2023 gross revenue rose 10% to $861.7M; net income fell 11% to $44.6M, while adjusted EBITDA increased 2% to $137.9M.

• Q4 revenue grew 14% to $215.5M; net income and adjusted EBITDA rose, while adjusted EPS declined 6% to $1.14.

Financial highlights

• Q4 gross profit was $108.6M, up 17%; net income was $9.9M, up 24%; GAAP diluted EPS was $0.64, up 23%.

• Q4 adjusted EBITDA was $37.3M, up 15%; adjusted EPS was $1.14, down 6%.

• FY gross profit was $430.4M, up 12%; GAAP diluted EPS was $2.88, down 12%.

• FY adjusted EPS was $4.81, down 7%; operating cash flow was $62.2M, versus $94.0M in 2022.

• Q4 operating cash flow was $16.8M, versus $13.6M, up 23%.

Outlook and guidance

• 2024 gross revenue guidance is $930M–$935M; GAAP EPS guidance is $2.86–$2.92 and adjusted EPS guidance is $5.00–$5.06.

• Strategic initiatives and acquisitions support accelerated organic growth and a targeted $1B revenue run rate by year-end 2024.

• Record backlog of $838M entering 2024, up 5% YoY, and an organic growth incentive program support the growth plan.