Wiit (WIIT) Q1 2025 earnings summary

Executive summary

• Revenues increased 22.6% year-over-year to €41.1 million, driven by organic ARR growth in Italy and Germany and contributions from recent acquisitions.

• Adjusted EBITDA rose 21.0% to €15.8 million, with a margin of 38.4% and like-for-like margin of 42.9%.

• Adjusted EBIT increased 8.5% to €7.8 million, with a margin of 18.9%, affected by higher amortization from investments and acquisitions.

• Adjusted net profit was €4.3 million, up 4.1% year-over-year.

• Major contract renewals and new agreements in Italy and Germany, including a €9 million, five-year deal for cloud services and the first Cloud Native Platform contract.

Financial highlights

• Recurring revenues (ARR) reached €33.7 million, up 26.2% year-over-year, representing about 90% of total revenues.

• Operating cash flow was €15.7 million; CAPEX totaled €11.1 million, mainly for IT infrastructure and data center capacity.

• Net financial debt stood at €216.9 million at March 31, 2025, reflecting investments, treasury share purchases, and IFRS16 impact.

• Net financial expenses totaled €2.1 million, mainly from bond interest and bank loans.

• Cash and cash equivalents at quarter-end were €17.5 million, up €2.0 million from December 2024.

Outlook and guidance

• Organic growth for 2025 expected at 8-10% in Italy and 4-6% in Germany, depending on contract timing.

• Management expects continued growth in cloud market adoption, with a focus on SaaS, PaaS, and IaaS solutions.

• Emphasis on technological specialization, cybersecurity, infrastructure scalability, and process automation.

• Human resources strategy will prioritize attracting and retaining advanced cloud, data analytics, and AI talent.

• German profitability expected to improve further in Q2 as synergies are realized and employee costs decrease.