Vercom S.A (VRC) Q2 2024 earnings summary

Executive summary

• Achieved continued profitable growth in H1 2024, with revenue up 41% YoY to PLN 220.5m and adj. EBITDA up 30–31% YoY, aligning with 2024 targets.

• Net profit attributable to shareholders was PLN 34.7m, up 28% YoY; FX-adjusted net income grew 37% YoY.

• Growth driven by 19% YoY increase in customer base, effective cross-selling to Enterprise clients, and CPaaS services.

• Strong demand for OTT and AI-driven communication solutions, especially among SMEs.

• Dividend of PLN 35.4m (PLN 1.60 per share) paid in May 2024 from 2023 profit.

Financial highlights

• Gross profit reached PLN 54m in Q2 (+24% YoY); H1 gross margin at PLN 104.4m.

• Adj. EBITDA at PLN 27m in Q2 (+30% YoY); H1 EBITDA at PLN 50.2m (+31% YoY), margin 22.8%.

• Net profit: PLN 34.8m (H1 2024) vs. PLN 27.2m (H1 2023).

• Sales to foreign customers grew 36% YoY to PLN 35.1m in Q2 2024.

• EPS: PLN 1.57 (H1 2024) vs. PLN 1.23 (H1 2023).

Outlook and guidance

• On track to achieve ambitious 2024 growth targets, with strong organic growth and increased addressable market.

• Management expects continued stable operations and no threats to going concern.

• Expectation of a positive net cash position by year-end, supporting further dividends and growth.