Vitec Software Group (VIT) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 reached SEK 3,334 million, up 20% year-over-year, with recurring revenues increasing 23% to SEK 2,878 million.

• EBITA surpassed SEK 1 billion for the first time, with a margin of 30%, and operating profit increased 18% to SEK 697 million.

• Earnings per share before dilution grew 19% to SEK 10.74; cash flow from operating activities exceeded SEK 1 billion.

• Seven acquisitions were completed in 2024, including Olyslager, Roidu, and Figlo, expanding into Belgium as a new home market.

• Board proposed a dividend increase to SEK 3.60 per share, marking the 23rd consecutive annual increase.

Financial highlights

• Q4 net sales were SEK 927 million, up 25% year-over-year, with recurring revenues rising 26% to SEK 769 million.

• Q4 EBITA was SEK 269 million (+20%), with an EBITA margin of 29% (down from 30%).

• Cash flow from operating activities in Q4 was SEK 102 million, a significant improvement from -11 million in Q4 2023.

• Proforma net sales for 2024 were SEK 3,626 million, with a CAGR of 21.1% since 2015.

• Recurring revenues accounted for 86%–87% of net sales in 2024.

Outlook and guidance

• Focus remains on sustainable profit growth through recurring revenues and continued organic and inorganic expansion.

• Expecting a price tailwind of approximately 3% in 2025 from CPI-linked price increases across markets.

• Ongoing investments in AI and automation to drive efficiency and product innovation.

• Recruitment needs are stable, with talent acquisition becoming somewhat easier; wage inflation expected to align with local CPI.

• Next interim report scheduled for April 23, 2025.