Wavestone (WAVE) Q1 2025 TU earnings summary

Executive summary

• Q1 2024/25 consolidated revenue reached €232.4 million, up 62% year-over-year, mainly due to acquisitions, with organic growth at 1% on a pro forma basis.

• Consultant utilization rate was stable at 73%, and the average daily rate increased to €944.

• Staff turnover rate was 13% (rolling 12 months, including acquisitions), with a workforce of 5,868 at quarter-end.

• Integration of Q_PERIOR and Aspirant Consulting contributed to revenue growth.

• Headquarters will move to Paris CBD in 2027 to enhance sustainability and talent attraction.

Financial highlights

• Q1 2024/25 revenue: €232.4m, up 62% year-over-year; organic growth at 1% on a pro forma basis.

• Average daily rate in Q1 was €944; at constant scope, €901, up 0.3% from last year.

• Consultant utilization rate was 73%, unchanged from last year.

• Order book at end of June represented 4.3 months of work (3.9 months at constant scope).

• Staff count at June 30, 2024 was 5,868, down slightly from March.

Outlook and guidance

• Annual organic growth target of 3%-5% over 2023-2024/25 pro forma revenue reiterated; revenue target: €972m–€991m at constant forex, excluding new acquisitions.

• Recurring operating margin objective of over 13% confirmed.

• H1 growth and profitability expected to be lower than full-year targets due to seasonality and high baseline effect.

• Profitability prioritized over growth until market visibility improves.

• Guidance excludes new acquisitions and is at constant exchange rates.