Serviceware (SJJ) Q4 2024 TU earnings summary

Executive summary

• Achieved over €100 million in revenue, a 12.8% year-over-year increase, reaching the upper third of original guidance (5%-15%).

• SaaS and service revenue grew 22.1%, with SaaS growth outpacing services and driving future performance.

• Internationalization and AI innovation identified as core growth drivers, with a strong pipeline in the U.S., Asia, and Europe.

• Migration from license to SaaS model continues, impacting current earnings but building a strong base for future recurring revenue.

Financial highlights

• Recurring revenue now comprises nearly 80% of total revenue, expected to rise further.

• Operative cash flow was nearly €10 million, converting most of the €12 million revenue growth into cash.

• Cash and cash equivalents increased by nearly 20% to €36 million, with €9 million parked in government bonds for risk management.

• EBITDA improved significantly, though EBIT remained slightly negative at -€320,000, close to breakeven.

• Contractual liabilities grew by 45% to €80 million, indicating strong future revenue backlog.

Outlook and guidance

• Revenue expected to grow 5-15% in the next fiscal year, with a conservative approach to guidance.

• EBITDA and EBIT are projected to improve, despite the end of R&D cost capitalization and new depreciation from the AI Process Engine.

• International pipeline is robust, and AI Process Engine is expected to drive both national and international sales.

• SaaS revenue growth target is at least 20%, with potential to exceed 30% depending on contract liabilities release.