Q3 2024 Exsitec Holding AB Earnings Call Transcript
Key Points
- Exsitec Holding AB (OSTO:EXS) reported a 5% overall revenue growth for Q3 2024, indicating resilience despite challenging market conditions.
- The company has seen a significant increase in recurring revenue, with a 32% year-over-year growth, driven by software subscriptions and in-house developed integrations.
- Exsitec Holding AB (OSTO:EXS) successfully onboarded 115 new employees, including 80 trainees and 20 sales talents, which is expected to contribute positively from Q2 2025.
- The company has a diversified customer base, with no single customer contributing more than 1-2% of revenue, reducing dependency on any single client.
- Exsitec Holding AB (OSTO:EXS) has a strong M&A pipeline and closed two small deals in Q3, indicating a proactive approach to growth through acquisitions.
- The company experienced a negative organic growth of almost 5%, with significant challenges in the Norwegian market due to quality issues and uneven resource utilization.
- Adjusted EBITDA margins dropped to around 4% from almost 8% last year, reflecting the cost impact of hiring new employees.
- Denmark's performance remains underwhelming, with slow market conditions and challenges in reaching scale with new offerings.
- The CEO, Johan Kallblad, announced plans to step down, which could lead to leadership uncertainty during the transition period.
- Exsitec Holding AB (OSTO:EXS) faced delays in project starts post-summer, attributed to customers' lack of readiness, impacting consulting services growth.
Welcome to this quarterly update for the third quarter of 2024 for Exsitec. Presenting will be the CEO, Johan Kallblad. And without further ado, I will leave the word to Johan.
Thank you, [Amos]. And thank you for joining. Talking now is me, Johan Kallblad. I served as CEO of Exsitec since 2010. I expect this presentation to be around 15 minutes, and it is possible to ask questions via the chat or the hand raise function in Zoom.
So it's I usually do, I will start off by making a short recap about the business. And after that, we'll cover Q3 financials and talk a little bit about our priorities going forward. So Exsitec, we exist to help medium-sized businesses in the Nordics use digital tools to improve their operations, and we are a one-stop shop. So the customer can focus on their core business and leave IT to us. Digital tools is an important part of almost every business wanting to stay competitive in a mature market like the Nordics.
So our offering can address areas like
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
