Wavestone (WAVE) H2 2024 earnings summary

Executive summary

• Revenue grew 32% year-over-year to €701.1m, with recurring operating profit up 32% to €101.3m and a recurring operating margin of 14.5%.

• Pro forma revenue, including Q_PERIOR and Aspirant Consulting for the full year, reached €943.8m with a recurring operating margin of 13.1%.

• Net income increased 17% year-over-year to €58.6m, representing an 8.4% net margin.

• Major acquisitions (Q_PERIOR and Aspirant Consulting) expanded global presence, contributed €333.4m and $26m in revenue respectively, and supported sector diversification.

• Strong CSR performance, with NPS® up to 73 and Top 5% ESG ratings.

Financial highlights

• Audited revenue: €701.1m (+32%); pro forma revenue: €943.8m.

• Recurring operating profit: €101.3m (+32%); operating income: €85.8m (+18%).

• Net income: €58.6m (+17%); net margin: 8.4%.

• Operational cash flow doubled to €83.1m; net cash at €19.3m at year-end.

• Dividend of €0.38 per share proposed.

Outlook and guidance

• 2024/25 revenue growth targeted at 3–5%, or €972m–€991m, with recurring operating margin above 13%.

• H1 2024/25 expected to see lower growth and profitability due to baseline and seasonality effects.

• Recruitment to remain moderate, targeting about 1,000 hires in 2024/25.

• Focus on profitability over growth amid weak demand, especially in banking, retail, industry, and French public sector.

• Financial objectives for 2024/25 to be confirmed on June 3rd with detailed annual results.