Spir Group (SPIR) Q2 2024 earnings summary

Executive summary

• Achieved all-time high revenues and profitability in Q2 2024, with revenue up 6.3% to MNOK 308 and ARR up 6% to MNOK 406, driven by organic growth and strong recurring revenues.

• Net income in Q2 2024 rose to MNOK 9.4 from MNOK 2.5 in Q2 2023; H1 net income improved to MNOK 3.8 from a loss of MNOK -4.2.

• Maintained leading positions in real estate data and public administration software in Norway and Sweden, with diversified revenue streams from subscriptions, transactions, and consulting.

• Continued execution of organic growth and M&A strategy, including acquisition of 15% in Prospect/Prosper Ai AS and exclusive distribution agreement.

• Focused on cost control and efficiency improvements following company reshaping and digitalization initiatives.

Financial highlights

• Q2 2024 revenue increased 6.3% year-over-year to MNOK 308; H1 2024 revenue was MNOK 571, up 4% year-over-year.

• Adjusted EBITDA for Q2 2024 was MNOK 56.4 (18% margin), up 5.6% year-over-year; H1 2024 adjusted EBITDA was MNOK 91.0 (16% margin), down from MNOK 98.1.

• Free cash flow for H1 2024 increased to MNOK 88 from MNOK 77 last year.

• Net finance improved to MNOK -9.2 in Q2 2024 from MNOK -11.4 in Q2 2023, supported by interest rate swap gains.

• Cash and cash equivalents at end of June 2024 were MNOK 35.6; liquidity reserve at MNOK 127.

Outlook and guidance

• Positive outlook for H2 2024, expecting further effects from cost optimization and continued demand for secure IT solutions.

• Anticipates growth in transaction-based revenues as real estate markets in Norway and Sweden recover.

• Ongoing investments in product development and active pursuit of bolt-on acquisitions to strengthen market position.

• Consulting revenues expected to grow steadily, especially in IT and climate consulting.