Talenom (TNOM) Q3 2024 earnings summary

Executive summary

• 9M revenue rose 5.4% to €97.0m and EBITDA increased 15.5% to €28.7m; Spanish acquisitions drove growth as recessionary conditions restrained organic growth in Finland and Sweden.

• Net income increased to €5.9m from €2.5m.

• Updated strategy focuses on accounting services and a separately operated software business designed for external sales.

Financial highlights

• Q3 revenue grew 2.7% to €29.1m; EBITDA rose 17.4% to €9.0m, with a 30.8% margin versus 27.0%.

• 9M EBIT was €11.4m versus €6.4m; comparable EBIT was €11.4m versus €9.5m, excluding a €3.2m prior-year software impairment.

• Q3 comparable EBIT was €3.0m versus €2.4m; reported EBIT was €3.0m versus a €0.8m loss.

• 9M EPS was €0.13 versus €0.06; Q3 net income was €1.2m versus a €1.7m loss, and EPS was €0.03 versus -€0.04.

Outlook and guidance

• Updated FY24 guidance: revenue €126m–€129m, EBITDA €34m–€37m and operating profit/EBIT €11m–€14m; includes one-time strategy and restructuring costs.

• Long-term annual revenue growth targets are over 20% for software and over 10% for services; prior medium-term targets were withdrawn.

• 2025 priorities include improving profitability in Sweden and Spain and building software sales channels; 2025 guidance will be issued later.

• Swedish software transition benefits are expected in the income statement from H2 2025; customer migration continues through 2025.