Visma (VISMA) Q4 2023 earnings summary

Executive summary

• Q4 revenue reached €651m, up 17% YoY and 14% organically; EBITDA was €193m, up 24%, with margin expansion of 1.8 percentage points.

• ARR rose 23% YoY to €2.296bn, including 16% organic growth; customers increased 16% to 1.7m.

• Seven acquisitions closed in Q4: six business combinations and one minority purchase.

Financial highlights

• FY 2023 revenue was €2.394bn versus €2.056bn in 2022; EBITDA was €707.8m versus €586.7m.

• Q4 operating profit (EBIT) was €55.7m versus €67.2m YoY; profit before tax from continuing operations was €21.3m versus €88.2m.

• Q4 net financial items were -€34.3m versus €21.0m, driven mainly by interest expense of €41.9m versus €8.3m.

• Q4 operating cash flow before tax was €132m versus €111m; cash outflow for business-combination investments was €299m versus €269m.

Outlook and guidance

• Active M&A is expected to continue in Q1 2024, with substantial growth opportunities identified in existing and new markets.

• Ecosystem expects strong growth to continue in 2024; Medium & Large Enterprise is focused on increasing scalability as it enters the year.

• Acquisition-driven growth is expected to remain a key contributor, with continued investment in cloud software and product development.