Thinc (THINC) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 2% year-over-year to 68.2 MSEK, but gross profit fell 2% and EBITDA dropped to -2.3 MSEK from 1.8 MSEK.

• The period was marked by lower activity due to seasonality and delayed client projects, with new customer wins expected to boost Q4.

• Several new contracts were secured, including with Neckermann Nordic and Coop, and a new agency, Thinc Experience, was launched.

Financial highlights

• Q3 2024 net sales: 68,188 TSEK (up 2% YoY); gross profit: 16,924 TSEK (down 2% YoY); gross margin: 24.8% (26.0%).

• Q3 EBITDA: -2,330 TSEK (1,811 TSEK YoY); EBITDA margin: -3.4% (2.7%).

• Net income for Q3: -4,643 TSEK (-653 TSEK YoY); EPS: -0.28 SEK (-0.04 SEK YoY).

• 9M 2024 net sales: 221,500 TSEK (up 8% YoY); gross profit: 54,738 TSEK (down 3% YoY); EBITDA: 770 TSEK (7,127 TSEK YoY).

• Cash flow from operations Q3: 3,090 TSEK (-11,906 TSEK YoY); cash at period end: 11,559 TSEK (5,596 TSEK YoY).

Outlook and guidance

• Management expects improved performance in Q4 as new projects ramp up and market activity increases.

• Long-term targets include >20% annual growth (including acquisitions), 7% EBITDA margin by 2028, and annual dividend of at least 30% of operating cash flow.