Siili Solutions (SIILI) Q4 2024 earnings summary

Executive summary

• Launched a renewed data and AI-focused strategy in 2023, aiming for leadership in AI-powered digital development and operational efficiency.

• 2024 marked by challenging macroeconomic conditions, especially in Finland and the public sector, but international expansion continued with new clients in Germany (automotive) and Finland (healthcare).

• Acquired a majority stake in Integrations Group to strengthen integration and AI capabilities.

• Initiated change negotiations in Finland to align expertise with AI strategy and market demand, targeting €2.7 million in annual cost savings.

• Workforce reduced by 6.5% to 942 employees at year-end.

Financial highlights

• 2024 revenue was €112 million (EUR 111.9 million), down 8.8–9% year-over-year—the first such decline in company history.

• Adjusted EBITA was €5.4 million (4.8% margin), down from €8.7 million (7.1%) in 2023.

• International revenue share reached 29–30% for the full year, with H2 2024 international revenue at €15.9 million (30.2% of group revenue).

• Q4 revenue was €28.6 million, a 5.9–6% decrease year-over-year, but improved sequentially from Q3.

• Q4 adjusted EBITA margin was 4.9–5%, with profitability improving towards year-end.

Outlook and guidance

• 2025 revenue guidance: €108–130 million; adjusted EBITA guidance: €4.7–7.7 million.

• Long-term targets (2025–2028): 20% annual revenue growth (half organic), sustainable EBITA margin of 12%, net debt/EBITDA below 2, and dividend payout of 30–70% of net profit.

• Assumes macro demand remains unchanged and the AI revolution continues; no expectation of market improvement in 2025.

• Priorities for 2025: scale up AI and improve profitability through operational efficiency.