Vercom S.A (VRC) Q3 2024 earnings summary

Executive summary

• Achieved robust profitable growth in Q3 2024, with strong organic expansion, value-accretive acquisitions, and significant CPaaS service growth driving results.

• Customer base grew 21% year-over-year to 91,600, supported by effective cross-selling and high Net Expansion Rate (NER).

• Net profit attributable to shareholders was PLN 54.1 million, a 35% increase compared to the same period last year.

• EBITDA margin was 21.5%, with operational EBITDA at PLN 78.8 million, up from PLN 60.7 million in the prior year.

• Significant adoption of RCS messaging, with major enterprise client implementations and further growth expected as iOS support expands.

Financial highlights

• Gross profit reached PLN 56m in Q3, up 18% year-over-year; adjusted EBITDA at PLN 29m, up 28%; net income at PLN 20m, up 52%.

• Sales revenue: PLN 365.6 million (9M 2024) vs. PLN 240.9 million (9M 2023).

• Net profit: PLN 54.1 million (9M 2024) vs. PLN 40.2 million (9M 2023).

• LTM adjusted EBITDA exceeded PLN 100m, surpassing the 2024 ESOP target by PLN 8m.

• Revenue growth driven by new client additions and cross-selling, with a 71% YoY increase in sales to Enterprise clients.

Segment performance

• All operations are within the CPaaS segment, with revenue growth across Poland, Czechia, and international markets.

• Poland contributed PLN 218.5 million, Czechia PLN 43.1 million, and other markets PLN 104.0 million to total revenue.

• The largest client accounted for 20% of total revenue.