Vertiseit (VERT) Q2 2024 earnings summary

Executive summary

• Achieved 50 consecutive quarters of ARR growth, reaching 179 MSEK at June 30, 2024, up 21% year-over-year and 4.9% sequentially.

• EBITDA margin for Q2 2024 was 22%, with net profit at 8.8 MSEK and free cash flow positive at 12.4 MSEK.

• Net revenue retention annualized at 113%, reflecting robust customer retention and expansion.

• Directed share issue and warrant exercise raised 87 MSEK, strengthening liquidity and supporting acquisition plans.

• New long-term targets set for SEK 1 billion ARR and over 35% cash EBITDA margin by 2032.

Financial highlights

• ARR at Q2 2024: 179 MSEK, up 21% year-over-year and 4.9% sequentially.

• EBITDA margin for Q2 2024: 22%; net profit: 8.8 MSEK; gross margin: 70.5%.

• Net revenue retention: 113% for the period.

• Available liquidity at quarter-end: 141.4 MSEK; equity ratio: 59.9%.

• Net debt: -1.3 MSEK, maintaining a net cash position.

Outlook and guidance

• On track to reach SEK 200 million ARR by end of 2024, with a strong sales pipeline and growth pace above 20%.

• New long-term goals for 2025–2032: ARR target of 1 billion SEK, cash EBITDA margin above 35%, and annual NRR above 100%.

• Focus on profitable growth, global expansion, and increased SaaS revenue share.