TSS (TSSI) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024 with revenue up 172% to $148.1 million, driven by surging demand for AI rack integration and procurement services.

• Diluted EPS rose to $0.24 in 2024 from near break-even in 2023, with net income reaching $6 million, up from $74,000.

• Adjusted EBITDA reached $10.2 million, up 283% year-over-year.

• Signed a multi-year agreement with the largest customer, enhancing revenue visibility and supporting major facility expansion.

• Secured debt financing for a new facility, expected to be fully operational by June 2025.

Financial highlights

• Q4 2024 revenue was $50 million, up 105% year-over-year; full-year revenue reached $148.1 million, up 172%.

• Q4 net income was $1.9 million, up 471% year-over-year; full-year net income was $6 million.

• Q4 diluted EPS was $0.08, up from $0.02; full-year diluted EPS was $0.24.

• Adjusted EBITDA for 2024 was $10.2 million; Q4 Adjusted EBITDA was $3.4 million, up 267%.

• Gross profit for FY 2024 was $22.4 million, up 103% year-over-year.

Outlook and guidance

• Q1 2025 revenue expected to exceed Q4 2024, with strong procurement and integration services.

• First half 2025 revenue projected to surpass second half 2024; 2025 adjusted EBITDA expected to be at least 50% higher than 2024.

• New facility to contribute to results starting Q2 2025, with ramping volumes through 2026.

• Systems Integration and Facilities Management expected to grow at higher rates than overall business.

• Profitability will be influenced by revenue mix, with procurement services showing more variability and lower margins.