Sinch (SINCH) Q4 2024 earnings summary

Executive summary

• Net sales grew 3% in Q4 2024 to SEK 7,729m, with full-year net sales at SEK 28.7bn and gross profit at SEK 9.7bn.

• Adjusted EBITDA margin was 13% in Q4, while reported EBITDA margin was 4% due to a SEK 700m one-time tax provision; underlying profitability remains intact.

• Transformation and cost-saving efforts delivered SEK 352m in annual run-rate savings, exceeding the SEK 300m target.

• New mid-term targets: 7–9% organic annual growth in net sales and gross profit, and 12–14% Adjusted EBITDA margin by 2027.

• Full-year net loss of SEK -6,413m, impacted by a SEK 6,000m goodwill impairment in Q3 and the Q4 tax charge.

Financial highlights

• Q4 net sales were SEK 7,729m, up 3% year-over-year; gross profit SEK 2,582m, up 1–2% year-over-year in constant currencies.

• Adjusted EBITDA for Q4 was SEK 1,003m; full-year Adjusted EBITDA was SEK 3,586m.

• Cash flow from operating activities improved to SEK 905m in Q4 and SEK 2,944m for the year.

• Net debt/Adjusted EBITDA improved to 1.5x from 2.0x year-over-year.

• Equity ratio at year-end was 60%.

Outlook and guidance

• Midterm targets reaffirmed: 7–9% organic annual growth in net sales and gross profit, and 12–14% Adjusted EBITDA margin by 2027.

• Continued focus on cost control, resource allocation to growth areas, and strong cash flow to support trajectory toward 2027 targets.

• Financial leverage policy: net debt to remain below 2.5x Adjusted EBITDA.