Solteq (SOLTEQ) Q4 2023 earnings summary

Executive summary

• FY revenue was €57.7m, down 15.7% YoY; comparable revenue was €54.2m, down 5.3%. Q4 comparable revenue held at €14.2m, while reported revenue fell 15.6% to €14.3m.

• FY operating loss was €3.5m and net loss €5.4m; reported EBITDA of €8.7m included an €8.1m gain on the Azets ERP business sale.

• Q4 operating loss widened to €9.1m, including a €7.5m product-development asset write-off; comparable operating loss was €1.0m, similar to the prior-year quarter.

Financial highlights

• FY comparable EBITDA was €0.7m, down from €4.5m; comparable operating loss was €3.9m versus €0.6m in 2022.

• Q4 EBITDA was -€0.8m versus €0.3m; comparable EBITDA was -€0.3m versus €0.3m. Excluding development-cost activations, comparable EBITDA improved €0.2m YoY.

• FY result before tax was -€4.7m versus -€6.6m; net loss was €5.4m versus €5.4m, and EPS was -€0.28 in both years.

• Operating cash flow was -€5.3m versus €3.9m; cash and cash equivalents were €1.9m at year-end versus €2.1m.

Outlook and guidance

• FY 2024 guidance: comparable revenue is expected to grow from €54.2m in 2023, and operating result is expected to be positive.

• Utilities restructuring is expected to deliver ~€3.8m in annual cost savings, with most benefits in 2024 and full realization expected during FY 2024.

• Utilities product-development and quality-assurance work is expected to produce results in 2024.