Systems (SYS) Q4 2024 earnings summary

Executive summary

• FY2024 revenue was $242.35M, up 27% in USD; revenue quadrupled over five years, with a five-year USD revenue CAGR of 41%.

• Profitability faced currency and talent-cost pressure; FY2024 EBITDA was $35.9M, up 2%, while operating profit was $26.09M versus $28.16M in FY2023.

• Healthy bookings, backlog and rollover support confidence in continued growth; strategic focus includes enterprise deals, AI, cloud and core markets.

Financial highlights

• Revenue was PKR 67,473M in FY2024 versus PKR 53,435M in FY2023, up 26%; EBITDA was $35.9M versus $35.1M, up 2% in USD.

• Operating profit was $26.09M versus $28.16M; net profit was PKR 7,460M versus PKR 8,150M. FY2023 operating profit and EBITDA were adjusted for a one-off impairment.

• Basic EPS was PKR 29.86 versus PKR 25.55; EPS rose 20% excluding exchange gains and losses. FY2024 ROE was 19%.

• FY2024 exchange loss was $0.9M, versus gains of $6.6M in 2022 and $8.0M in 2023; FY2023 net profit included a PKR 2.3B exchange gain.

• Q4 was the highest-ever quarter for top-line revenue, including non-recurring infrastructure license and services trading transactions tied to customer year-end orders.

Outlook and guidance

• Order book, bookings and rollover were described as healthy, with visibility for at least a few quarters; management remained confident in the growth trajectory.

• CY25 planning assumes a more conservative currency scenario; depreciation would benefit results given more than 90% dollar-linked revenue.

• Revenue per employee and margins are expected to improve through rate negotiations, productivity and controlled fixed costs; no numerical margin target or forward EPS was provided.

• Priorities include AI and GenAI, talent upskilling, new offerings, stronger existing geographies and acquisitions focused on export revenue.