Wise Group (WISE) Q4 2024 earnings summary

Executive summary

• Revenue for Q4 2024 was SEK 155.7m, down 21% year-over-year; full-year revenue was SEK 630.6m, also down 21%.

• Adjusted for one-time personnel and IT costs, Q4 EBITDA was SEK 5.2m (3.3% margin); full-year adjusted EBITDA was SEK 17.1m (2.7% margin).

• Cost reduction measures led to a 26% decrease in headcount and SEK 150m lower annual costs, with further reductions expected in 2025.

• Cash flow from operations remained positive at SEK 6.2m in Q4 and SEK 3.2m for the year.

• No dividend proposed for 2024.

Financial highlights

• Q4 EBITDA was SEK 1.3m (SEK -5.7m last year); Q4 operating result was SEK -3.6m (SEK -12.0m last year).

• Full-year EBITDA was SEK 7.5m (SEK 7.6m); operating result SEK -17.2m (SEK -18.8m).

• Q4 net result was SEK -7.3m (SEK -10.1m); full-year net result SEK -19.2m (SEK -16.2m).

• Earnings per share for 2024: SEK -2.59 (SEK -2.19).

• Cash and equivalents at year-end: SEK 36.9m (SEK 53.7m).

Outlook and guidance

• Management expects further cost reductions in 2025 and is shifting focus from cost savings to sales growth.

• Early signs of market improvement observed, with increased client interest and a shift from consulting to permanent recruitment.

• Wise Group is positioned to benefit from even a modest market upturn.