Secunet Security Networks (YSN) Q4 2024 earnings summary

Executive summary

• Achieved first market approval for classified information on SINA Cloud, marking a key milestone in secure cloud offerings.

• Eleventh consecutive annual sales record, surpassing €400 million in revenue, with strong growth in public sector (7%) and international business (14%).

• Expanded product portfolio with SINA Mobile (Android approved, iOS pending) and high-speed connector 2.0 for eHealth telematics.

• Strengthened partnerships, notably with CGI for NATO market, and continued international expansion, including new markets in Spain and Eastern Europe.

• Announced CEO transition planned for end of year.

Financial highlights

• Revenue exceeded €400 million, with a 16% CAGR over the last decade; growth slowed slightly after consecutive record years.

• EBIT reached €42.5 million; dividend per share set at €2.73, maintaining a 50% payout ratio.

• Strong cash inflow, close to 40%, and no bank liabilities; high cash and cash equivalents.

• Inventory adjustment of €4 million above regular level due to pandemic-era stock buildup; not expected to recur regularly.

• International sales rose from €35 million to €40 million; German sales up 2% due to segment reduction.

Outlook and guidance

• Targeting €425 million revenue and EBIT margin of €9.5–11.5 million for 2025, with increased R&D spending.

• Order backlog exceeds €200 million, supporting future growth.

• Expecting further growth in public sector, eHealth (as-a-service model), and international markets, including Middle East and NATO.

• Cloud and mobile solutions expected to drive future revenue; iOS approval anticipated soon.

• Medium-term EBIT margin target of 15%, with 12% possible as early as next year depending on market development.