Q2 2024 Exsitec Holding AB Earnings Call Transcript
Key Points
- Exsitec Holding AB (OSTO:EXS) reported double-digit top line growth with improved margins in Q2 2024.
- The company achieved a 13% overall growth with organic growth of over 5%, reaching SEK211 million in revenue compared to SEK186 million last year.
- Profitability improved significantly, with EBITA increasing from SEK34 million to SEK44 million, resulting in a margin improvement of almost 3%.
- Recurring revenue from software showed solid growth, with a 39% increase in Q2 compared to the previous year.
- Exsitec Holding AB (OSTO:EXS) is getting back into an M&A agenda, leveraging a finance agreement finalized last quarter, indicating a strategic focus on growth through acquisitions.
- The market remains passive with long sales cycles, impacting the speed of closing deals.
- Denmark's performance was underwhelming in a slower market, highlighting challenges in reaching scale with new offerings.
- The company faced one-off costs due to organizational restructuring in Norway, affecting quarterly results.
- Sales cycles are twice as long as historical averages, indicating a challenging sales environment.
- The e-commerce sector remains slow in terms of new investments, affecting potential growth in this segment.
So welcome to this quarterly update for the second quarter of 2024 for Exsitec. Thank you for joining. Talking now is me, Johan Kallblad. My voice is a little sore today due to analysts summer call, and I know many of you have a lot of earnings calls to attend to today, so I will try to make this brief.
15 minutes should cover it. It's possible to ask questions via the Hand Raise function in Zoom or via the chat, and we'll do our best to answer them.
I will start off by making a short recap about our business. And after that, we will cover Q2 financials and a short market update and a recap of our priorities going forward. So we help medium-sized businesses in the Nordics use digital tools to improve their operations. Digital tools can address areas like reducing financial administration through automation or use data for better decision-making and forecasting or managing sales force or adopting e-commerce.
We help our customers with an offering that consists of several software components where we allow the customer
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| 8,000+ Institutional investors’ 13F holdings | |
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