Swvl (SWVL) H2 2024 earnings summary

Executive summary

• Achieved significant improvements in gross margin, recurring revenue, and dollar-pegged revenue in FY24 compared to prior years.

• Focused on high-margin operations in Saudi Arabia and portfolio optimization in Egypt, driving profitability.

• Streamlined general and administrative expenses and improved working capital efficiency, reducing cash outflows.

Financial highlights

• Gross margin improved by 315bps in FY24 over FY23, and by 2,075bps over FY22.

• Recurring revenue reached 75% of total revenue in FY24, up from 73% in FY23 and 68% in FY22.

• Dollar-pegged revenue grew by 95% in FY24 over FY23, representing 21.3% of total revenue in FY24.

• Net cash flows used in operating activities reduced by 64% in FY24, following a 92% reduction in FY23.

Outlook and guidance

• Plans to expand dollar-pegged revenue in the UK and U.S. to ensure long-term sustainability and reduce FX risk.

• Anticipates continued growth in new contract cohorts and further margin expansion in key markets.