Tecsys (TCS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 achieved record total revenue of $44.0M in Q4 (up 7% year-over-year) and $171.2M for the year (up 12%), with strong organic growth, record SaaS revenue, and expanding customer base in healthcare and complex distribution.

• SaaS revenue grew 27% in Q4 and 39% for the year, now representing 64% of recurring revenue, with SaaS RPO up 43% to $196.9M.

• Record SaaS bookings in Q4, up 108% year-over-year, and ARR at April 30, 2024, reached $94.7M, up 21%.

• Strategic restructuring and leadership changes completed in Q4 to boost long-term profitability and reinvest in growth areas.

• Net profit was $0.3M in Q4 and $1.8M for FY2024, both slightly down year-over-year due to $2.1M in restructuring charges.

Financial highlights

• Q4 total revenue: $44.0M (+7%); FY2024 total revenue: $171.2M (+12%).

• Q4 SaaS revenue: $14.2M (+27%); FY2024 SaaS revenue: $51.9M (+39%).

• Q4 gross margin improved to 47% from 45% last year; FY2024 gross margin at 46%.

• Adjusted EBITDA for FY2024 was $9.6M, nearly flat year-over-year; Q4 Adjusted EBITDA up 14% to $2.8M.

• Ended Q4 with $18.9M in cash and no debt; $7.2M used for share repurchases.

Outlook and guidance

• FY2025 guidance: total revenue growth of 7-9%, SaaS revenue growth of 30-32%, Adjusted EBITDA margin of 8-9%.

• FY2026 Adjusted EBITDA margin guidance of 10-11%.

• Continued focus on SaaS transition, healthcare sector expansion, and investment in AI and product innovation.

• Hardware revenue expected to moderate to 2023 levels after a strong 2024.