Siili Solutions (SIILI) Q4 2024 earnings summary

Executive summary

• Revenue declined 8.8% year-over-year to €111.9 million in 2024 due to challenging market conditions and efficiency measures.

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

• Opened significant new client relationships in Germany (automotive) and Finland (healthcare), and acquired a majority stake in Integrations Group Oy to strengthen integration capabilities.

• Workforce reduced by 6.5% to 942 employees at year-end, with change negotiations in Finland targeting €2.7 million in annual cost savings.

• International revenue share increased to 29%, with international business outperforming domestic operations.

Financial highlights

• Full-year revenue was €111.9 million, down 8.8% 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.

• Net income was €3.4 million, with EPS of €0.43 (down from €0.61).

• Cash flow from operations increased 43.6% to €10.8 million.

• International revenue share reached an all-time high of nearly 30% for the full year, surpassing 30% in Q4.

Outlook and guidance

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

• 2025–2028 targets: 20% annual revenue growth (half organic), 12% adjusted EBITA margin, 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.