Wise Group (WISE) Q3 2024 earnings summary

Executive summary

• Revenue declined 25% year-over-year to 122.4 Mkr in Q3 2024, with continued weak demand and no signs of market recovery.

• EBITDA was -4.7 Mkr, impacted by 0.9 Mkr in one-time personnel and IT costs; adjusted EBITDA was -3.8 Mkr.

• Net result for Q3 was -9.2 Mkr, with EPS at -1.24 kr, compared to -5.4 Mkr and -0.74 kr last year.

• Strategic transformation initiated to improve efficiency and market position, with expected results in early 2025.

Financial highlights

• Q3 revenue: 122.4 Mkr (down 25% YoY); 9M revenue: 474.9 Mkr (down 22% YoY).

• Q3 EBITDA: -4.7 Mkr; adjusted for one-time costs: -3.8 Mkr.

• Q3 operating income: -11.3 Mkr; adjusted: -10.4 Mkr.

• 9M EBITDA: 6.3 Mkr (13.3 Mkr prior year); 9M operating income: -13.6 Mkr.

• Cash flow from operations in Q3: 2.4 Mkr (vs. -32.7 Mkr prior year); 9M: -3.0 Mkr.

Outlook and guidance

• No market improvement expected in the near term; cautious customer behavior likely to persist into H1 2025.

• Ongoing organizational transformation aims to deliver efficiency and profitability, with initial effects anticipated in early 2025.