Vertiseit (VERT) Q4 2024 earnings summary

Executive summary

• ARR at year-end 2024 reached 275.1 MSEK, up 65.8% year-over-year, with 18.7%-19% organic growth, driven by the Visual Art acquisition and strong system sales.

• Net revenue for Q4 2024 increased 132% to 202.8 MSEK, with EBITDA up 60% year-over-year and a 16% margin.

• Visual Art integration was completed rapidly, enhancing platform, IT, and operational capabilities, and providing a new baseline for the group.

• Major agreement signed with KFC UK, covering 1,000+ restaurants and 5,000+ licenses, adding ~5 MSEK ARR annually.

• The group has achieved 52 consecutive quarters of sequential ARR growth, with a continued focus on global expansion and platform growth.

Financial highlights

• Full-year 2024 net revenue grew 33.5% to 464.1 MSEK; Q4 net revenue was 202.8 MSEK, up 132% year-over-year.

• SaaS revenue for Q4 2024 rose 65% to 71.0 MSEK; full-year SaaS revenue reached 209.1 MSEK, up 28% year-over-year.

• Adjusted EBITDA for Q4 2024 was 32.9 MSEK (16.2% margin); full-year adjusted EBITDA was 97.7 MSEK (21.1% margin).

• Net profit for 2024 was 41.2 MSEK; free cash flow for Q4 2024 was 3.1 MSEK; available liquidity at year-end was 83.5 MSEK.

• Net debt at year-end stood at approximately 202 MSEK, following acquisition financing.

Outlook and guidance

• Focus for 2025 is on realizing synergies from the Visual Art integration, improving profitability, and increasing SaaS revenue share.

• SaaS revenue share is expected to exceed 50% during the next fiscal year, not in 2024.

• Strategic initiatives include expanding in North America, prioritizing license revenue, and leveraging group-wide synergies.

• No dividend proposed for 2024; long-term goals include ARR >1 billion SEK and cash EBITDA margin >35% by 2032.