Serviceware (SJJ) Q3 2024 earnings summary

Executive summary

• Sales revenues for the first nine months rose 12.5% year-over-year to €76.2 million, with SaaS/Service revenues up 21.3% to €50.8 million, now comprising 66.6% of total sales.

• EBITDA improved to €2.8 million from a loss of €0.6 million, and EBIT improved to €-24k from €-3.4 million, reflecting successful SaaS transformation.

• Serviceware achieved record quarterly sales in Q3, driven by strong SaaS demand and AI integration across its ESM platform.

• International expansion advanced, with new partnerships in North America and customer wins in Asia and Europe.

Financial highlights

• Q3 sales revenues reached €25.9 million, up 17.5% year-over-year; SaaS/Service Q3 revenues were €18.0 million, up 19.8%.

• Cash and cash equivalents increased 14.3% since November 2023 to €32.3 million.

• Contract liabilities rose 42.4% to €78.9 million, reflecting a growing SaaS order backlog.

• Equity ratio decreased to 30.1% from 37.1% due to higher contract liabilities and negative period result.

• Net loss after taxes narrowed to €-721k from €-3.1 million year-over-year.

Outlook and guidance

• Full-year revenue growth now expected at 10–15%, raised from previous 5–15% range, with Q4 anticipated to be strong.

• Significant improvement in EBIT and EBITDA expected for the full year versus prior year.

• Medium-term outlook remains positive, contingent on continued international expansion and absence of major external shocks.