RaySearch Laboratories (RAY) Q4 2024 earnings summary

Executive summary

• Achieved record-high sales in Q4 2024 at SEK 323 million, up 8% year-over-year, and full-year net sales of SEK 1.192 billion, up 17% year-over-year.

• Operating profit for Q4 reached SEK 74 million (23% margin), and full-year operating profit doubled to SEK 260 million (22% margin), exceeding the 2026 target.

• Support revenue grew 14% in 2024, now 40% of total sales, driven by new license sales and high customer retention.

• Strong cash position at SEK 463 million, with stable cash flow and no loans.

• Board proposes increasing the dividend from SEK 2 to SEK 3 per share.

Financial highlights

• Q4 net sales: SEK 323 million (+8% year-over-year); full-year net sales: SEK 1.192 billion (+17%).

• Q4 operating profit: SEK 74 million (23% margin, up from 15%); full-year operating profit: SEK 260 million (22% margin, up from 11%).

• License sales in Q4: SEK 160 million (+16%); support revenue: SEK 131 million (+9%).

• Q4 order intake: SEK 305 million (-4%); full-year order intake: SEK 1.087 billion (+8%).

• Cash flow from operations in 2024: SEK 485 million (up from SEK 456 million in 2023).

Outlook and guidance

• Positive outlook for order intake and revenue growth in 2025.

• Operating margin target raised to at least 25% by 2026 (previously 20%) after exceeding the target in 2024.

• Continued investment in sales, marketing, and R&D at a similar pace as previous years.

• Management expects continued growth momentum into Q1 2025 and beyond.