Talenom (TNOM) Q1 2024 earnings summary

Executive summary

• Q1 revenue rose 8.8% YoY to €34.053m and EBITDA increased 13.4% to €9.486m; Finnish efficiency gains supported profitability.

• Growth was mainly acquisition-led, particularly in Spain, while recession restrained organic growth in Finland and Sweden.

• Strategic priorities included organic growth, efficiency and Swedish platform migration; recurring revenue exceeded 90%.

Financial highlights

• Revenue was €34.053m versus €31.311m; EBITDA was €9.486m versus €8.365m.

• EBIT rose to €3.855m from €3.458m, while net income edged down to €2.034m from €2.057m; EPS was €0.04 versus €0.05.

• Net finance costs increased to €1.030m from €0.708m, contributing to lower net income despite higher EBIT.

• Personnel costs rose to €20.0m from €18.1m, or 58.8% of revenue versus 57.8%; materials, services and other costs were €5.0m versus €5.1m.

Outlook and guidance

• FY 2024 guidance was unchanged: revenue €130–140m, EBITDA €34–40m and EBIT €14–17m.

• The accounting-services market is expected to grow across operating countries in 2024, with stable demand and continued consolidation.

• Acquisition activity is expected to be lower than in 2023 and focused on strategically significant deals; guidance includes potential 2024 acquisitions.

• Swedish software implementation is expected to weigh on 2024 profitability; own systems are expected to improve profitability in subsequent years.