Talenom (TNOM) Q4 2024 earnings summary

Executive summary

• FY24 revenue rose 3.7% to €126.2m and EBITDA increased 9.0% to €34.8m; growth was modest amid weak conditions in Finland and Sweden and stronger Spanish volumes.

• Updated strategy establishes accounting services and software as two growth pillars; software will be offered to other accounting firms and their clients, while non-core services shift to partners.

Financial highlights

• FY24 reported EBIT was €11.4m, up 43.6%, and net income was €6.1m, up 81.2%; EPS was €0.13 vs. €0.07.

• Comparable EBIT rose 2.8% to €11.4m, with margin of 9.0% vs. 9.1%; the 2023 comparable figure excluded a €3.2m software impairment.

• Q4 revenue declined 1.7% to €29.2m; EBITDA fell 13.8% to €6.1m, EBIT 96.5% to €0.06m, and net income 82.0% to €0.1m.

• Q4 profitability was reduced by an estimated €0.5m of one-time restructuring costs, fewer effective December workdays and elevated Swedish rollout costs.

Outlook and guidance

• FY25 guidance is revenue of €130m–€140m and EBITDA of €36m–€42m, including potential acquisitions.

• Finland and Sweden market conditions are expected to remain similar in H1 and improve in H2; demand across operating countries is expected to remain stable.

• Priorities include improving Swedish profitability, developing software sales channels and SaaS capabilities, and pursuing Spanish growth as e-invoicing requirements are phased in.

• Standardized processes and automation are expected to support profitability; lower software investment after restructuring is expected to improve cash flow and moderate depreciation growth.