Q4 2024 Techstep ASA Earnings Call Transcript
Key Points
- Techstep ASA (OSL:TECH) reported a significant improvement in profitability, with EBITDA adjusted doubling in 12 months and increasing tenfold over two years.
- Recurring revenue increased by 6% year over year, reaching an all-time high, with own software showing double-digit growth of 11%.
- The company generated a positive cash flow from operations of NOK26 million in the last quarter.
- Techstep ASA (OSL:TECH) successfully expanded its service delivery, with several new signings and renewed contracts, including a large contract with ISS and SL in Sweden.
- The company entered a strategic partnership with a leading IT vendor, marking its entry into the Ireland and UK markets, which is expected to enhance operational efficiency and customer experiences.
- Techstep ASA (OSL:TECH) faced a net loss of NOK4.5 million in the period, primarily due to non-cash items such as amortization of intangible assets.
- The company experienced a dip in transactional revenues from consulting and aftermarket services, resulting in a 2% reduction in advisory and services revenues year over year.
- There is uncertainty and difficulty in predicting the ramp-up time for new partnership agreements, which could impact future revenue growth.
- The company is undergoing a comprehensive restructuring, which involves significant changes in strategy, commercial focus, and internal processes, potentially leading to short-term disruptions.
- Techstep ASA (OSL:TECH) faces high competition and pressure on margins, particularly in the Swedish market, which began the year with challenges.
Good morning everyone and welcome to our Q4 presentation followed by a Q&A session. We're already well into the new year and we've been looking forward to share the last quarter results with you and how we are positively developing and increasing our profitability across markets and revenue streams.
At the end of the presentation, we will open up for questions and you can at any time during the presentation post questions in the chats.
My name is Morten Meier, and I have had the great opportunity and pleasure to lead Techstep in the last 12 months. I'm here with our CFO, Ellen Solum, who had her 2nd anniversary this month, and we are both very satisfied with the progress and improvements we see every day and the last quarters and which we also will share with you today for Q4.
Let me first start with some reflections on my first year and some key achievements. Since I took on this role in February '24, we've been looking into three key aspects of our business. Which areas are most profitable today. Where do we see the
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