Talenom (TNOM) Q3 2024 earnings summary

Executive summary

• Updated strategy centers on scalable growth, core competencies, and digitalization, with software business separated into its own company and non-core services shifted to partners.

• Profitability improved despite economic downturns, with efficiency measures in Finland and strong growth in Spain offsetting declines in Finland and Sweden.

• Internationalization continues in Finland, Sweden, Spain, and Italy, with Spain showing robust expansion.

• Emphasis on automation, AI, and premium services to enhance efficiency and profitability.

• Medium-term financial targets withdrawn; new long-term targets set for over 20% annual net sales growth in software and over 10% in services.

Financial highlights

• Group revenue for Jan–Sep 2024 grew 5.5% year-over-year to €97.0M; Q3 net sales up 2.7% to €29.1M.

• EBITDA for Jan–Sep 2024 increased 15.5% to €28.7M (29.6% margin); Q3 EBITDA €9.0M (30.8% margin).

• Operating profit (EBIT) for Jan–Sep 2024 was €11.4M–€13.1M, with relative profitability improving.

• Net profit for Jan–Sep 2024 grew 134.8% to €5.9M; Q3 net profit €1.2M.

• Updated 2024 guidance: net sales €126–129M, EBITDA €34–37M, operating profit €11–14M, including non-recurring costs.

Outlook and guidance

• Long-term targets: annual net sales growth over 20% in software and over 10% in services; 2025 guidance to be provided later.

• Focus in 2025 on improving profitability in Sweden and Spain, and building software sales channels.

• Financial benefits from software rollout in Sweden expected in H2 2025.