Q4 2024 Enghouse Systems Ltd Earnings Call Transcript
Key Points
- Revenue increased by 10.7% for the fiscal year, reaching $502.5 million, marking a third consecutive year of growth.
- Recurring revenue, including SaaS and maintenance services, grew by 16.4% for the fiscal year, highlighting strong demand for SaaS solutions.
- Net income rose by 12.6% to $81.3 million, demonstrating a focus on profitability.
- Cash and cash equivalents reached a record level of $274.2 million, with no external debt, positioning the company well for future growth.
- The company returned $53.1 million to shareholders through dividends, an increase of 18.7% from the prior period.
- Results from operating activities decreased in the fourth quarter compared to the previous year.
- Adjusted EBITDA decreased to $35.6 million in the fourth quarter, with a margin of 28.3%, down from the previous year.
- Demand for on-premise, perpetual software licenses has declined as more customers opt for SaaS solutions.
- The transition to SaaS has not resulted in expected growth, with some segments experiencing flat or declining revenues.
- Margins have been impacted by a large project in the Nordics that has been losing money, affecting overall profitability.
Good morning, ladies and gentlemen, and welcome to the Enghouses Q4 2024 conference call. (Operator Instructions) This call is being recorded on Friday, December 13, 2024.
I would like to turn the conference over to Steven Sadler. Please go ahead.
Good morning, everybody. I'm here today with Rob Medved VP, Finance; and Todd May, VP, Legal Counsel. Before we begin, I'll have Todd read our forward disclaimer.
Certain statements made may be forward-looking by their nature. Such forward-looking statements are subject to various risks and uncertainties, including those mentioned in this continuous disclosure filings such as its [IR], which could cause the company's actual results and experience to differ materially from anticipated results or other expectations. Undue reliance should not be placed on forward-looking information, and the company has no obligation
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