Talenom (TNOM) Q3 2023 earnings summary

Executive summary

• 9M revenue grew 21.4% to €92.0m, but growth fell short of target; acquisitions drove most growth, while organic growth was strongest in Finland.

• Profitability measures progressed, but growth investments, wage inflation, integration costs and weaker economic conditions weighed on margins.

Financial highlights

• 9M EBITDA was €24.9m, down 2.3%, with a 27.0% margin vs 33.6%; comparable EBIT was €9.5m, down 27.2%.

• 9M reported EBIT fell 51.4% to €6.4m; net income declined 74.6% to €2.5m and EPS was €0.06 vs €0.23.

• Q3 revenue rose 20.0% to €28.3m and EBITDA increased 4.9% to €7.6m; comparable EBIT fell 22.4% to €2.4m.

• Q3 reported EBIT was -€0.8m and net income -€1.7m, vs €3.1m and €2.2m a year earlier.

Outlook and guidance

• Updated FY2023 guidance: revenue €120–125m, EBITDA €30–34m, comparable EBIT excluding software write-downs €10–13m, and reported EBIT €7–10m.

• Focus is shifting from acquisition-led expansion toward profitability improvement and greater organic growth; measures are expected to strengthen profitability in 2024.

• Digitalization of European accounting markets is expected to support future growth.