Q3 2024 Crayon Group Holding ASA Earnings Call Transcript
Key Points
- Crayon Group Holding ASA (CRAYF) reported a 14% growth in gross profit, reaching NOK1.4 billion.
- Adjusted EBITDA improved significantly, ending at NOK238 million, an increase of NOK95 million compared to the same quarter last year.
- The company upgraded its full-year adjusted EBITDA outlook to 19% to 20%, reflecting strong profitability measures.
- Working capital improved by NOK748 million from the previous year, leading to an upgraded outlook of minus 10% to minus 15%.
- Crayon Group Holding ASA (CRAYF) continues to see strong demand for software and cloud services, with an 18% growth across direct and channel sales.
- Consulting in the Nordics showed a cautious demand, declining by 1% year-on-year.
- The company's gross profit outlook for 2024 was revised down from 18% to 20% to 15% to 17%.
- The channel business in Europe experienced a 4% decline, negatively impacted by the Broadcom distribution model transition.
- APAC operations faced slower than anticipated volumes with Broadcom due to increased prices.
- The US market showed a soft performance in software and cloud, impacted by slower decision cycles due to the US election.
Good morning and welcome to Crayons Q3 results presentation. My name is Kjell Arne Hansen and I'm the head of investor relation with me today presenting the results for the quarter. We have CEO Melissa Mulholland and our CFO Brede Huser. After the presentation, there will be a Q&A session and with that, I hand it over to Melissa.
Thank you for joining our Q3 presentation. Gross profit ended at NOK1.4 billion a growth of 14% overall. We continue to see solid growth, demand for software and cloud remains strong while consulting in the Nordics continues to be cautious and declined 1% year on year and therefore, we have been conservative in hiring as a result of our performance year-to-date. We have revised our outlook for 2024 from 18% to 20% to 15 to 17%.
As we have communicated earlier, the measures we have taken to strengthen profitability yield results. And our adjusted EBITDA ended at NOK238 million which
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