Witted Megacorp (WITTED) Q3 2024 earnings summary

Executive summary

• Profitability improved as planned, with the best sales quarter in two years and signs of pent-up market demand.

• Revenue declined 16.4% year-over-year in Q3 2024 to €11.4 million, with adjusted EBITA improving to €0.2 million (2.1% margin) from a loss.

• Nine-month revenue fell 17.0% to €39.9 million, with adjusted EBITA at €1.1 million (2.8% margin), reflecting cost-saving measures.

• The number of experts at period end decreased by 21.1% year-over-year to 329.5 FTE.

• Profitability gains were driven by reduced personnel and operating costs.

Financial highlights

• Q3 2024 revenue was €11.4 million, down 16.4% year-over-year.

• Adjusted EBITA was €0.2 million (2.1% margin), up from -€0.3 million (-2.0%) a year ago.

• Net loss for Q3 was €0.06 million, a significant improvement from a €0.8 million loss last year.

• Personnel expenses for the nine months were €11.3 million, down 25.3% year-over-year.

• Currency effects, mainly NOK weakness, reduced revenue by €0.2 million over nine months.

Outlook and guidance

• Profitability targets for the strategy period include over 8% adjusted EBITA in Finland and positive adjusted EBITA in other countries.

• No full-year financial guidance is provided; monthly business reviews and quarterly updates are published.

• Strategic focus remains on improving sales capabilities and operational efficiency.

• Market recovery is noted in all Nordics, with sales momentum improving post-summer.