SYS-DAT (SYS) Q2 2024 earnings summary

Executive summary

• Achieved strong H1 2024 growth with revenues up 28.4% to €28.7 million and net income up 23.6% to €2.6 million, driven by recurring revenues, proprietary software, and a diversified customer base.

• Successfully completed IPO on Euronext Milan STAR segment in July 2024, raising €32.5 million for organic and inorganic growth, with free float at 35.1% and market cap of €103–106 million.

• Expanded offerings in ERP, CRM, cloud, cybersecurity, and AI, with continued investment in R&D and new vertical solutions.

• Maintained strong cash generation and improved net financial position, supported by high share of recurring and repeatable revenues.

Financial highlights

• H1 2024 revenue reached €28.7 million (+28.4% YoY); EBITDA €5.9 million (+25.2% YoY); net income €2.6 million (+23.6% YoY); EBIT €4.2 million (+14.9% YoY).

• EBITDA margin at 20.6%–21%; net income margin at 9%–9.1%.

• Operating cash flow increased to €6.7 million (+18.7% YoY); liquidity at €21.6 million as of June 30, 2024.

• Net financial position improved to €5.7 million, up €2.6 million from December 2023.

• Total assets €65.5 million; group equity €21.6 million.

Outlook and guidance

• IPO proceeds to be invested in organic and inorganic growth, with ongoing acquisition discussions in cybersecurity, legal, and digital commerce.

• Focus on strengthening vertical market solutions, SaaS/cloud, middleware, and ESG position, with about 5% of revenues invested in R&D annually.

• Continued scouting for attractive acquisition targets to expand software solutions and market reach.