Siili Solutions (SIILI) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 declined 9.3% year-over-year to EUR 59.2 million, reflecting challenging market conditions and efficiency measures that reduced personnel.

• Adjusted EBITA for H1 2024 was EUR 3.3 million (5.6% margin), down from EUR 5.0 million (7.7%) in H1 2023, but Q2 profitability improved sequentially and year-over-year.

• Siili launched a new strategy focused on artificial intelligence, aiming to be a leader in AI-assisted software development and data solutions.

• Major contract win: selected as one of Yle's suppliers in a EUR 35 million framework agreement for 2024–2028.

Financial highlights

• H1 2024 revenue: EUR 59.2 million (down 9.3% year-over-year); Q2 revenue: EUR 29.4 million (down 7.3%).

• Adjusted EBITA H1 2024: EUR 3.3 million (5.6% margin); Q2 adjusted EBITA: EUR 1.7 million (5.9% margin, up from 5.2% in Q2 2023).

• EBIT H1 2024: EUR 2.1 million (3.6% margin); net profit: EUR 1.8 million; EPS: EUR 0.22 (down from EUR 0.44).

• Cash flow from operations grew 46.9% to EUR 4.9 million; cash and cash equivalents at period end: EUR 17.5 million.

• Dividend of EUR 0.26 per share (EUR 2.1 million total) paid for 2023.

Outlook and guidance

• 2024 revenue guidance: EUR 120–140 million; adjusted EBITA: EUR 7.5–10.5 million.

• Long-term targets (2024–2026): 20% annual revenue growth (half organic), EBITA margin 12%, net debt/EBITDA <2, and dividend payout of 30–70% of net profit.

• Market normalization expected, with AI seen as a long-term growth driver.