Brilliant Future (BRILL) Q4 2024 earnings summary

Executive summary

• Achieved improved profitability and a more sustainable business model, with positive EBIT and strong cash flow in Q4 2024 despite a 4.5% decline in net sales year-over-year.

• Ongoing transformation and cost efficiency measures led to a 10% increase in adjusted EBITDA for the quarter, even as net sales and ARR declined slightly due to the loss of a few large customers.

• Record number of new subscription sales, mainly to smaller customers, diversifying the customer base and reducing risk.

• Launched Brilliant Future Consulting AB to strengthen the consulting business alongside the SaaS offering.

Financial highlights

• Q4 2024 net sales: 23,203 TSEK (down 4.5% year-over-year); total revenue: 26,686 TSEK (down 2.1%).

• Q4 EBITDA: 2,838 TSEK (up from -501 TSEK); adjusted EBITDA: 2,838 TSEK (up 10% year-over-year).

• Q4 EBIT: 86 TSEK (up from -2,509 TSEK); adjusted EBIT: 86 TSEK (down from 573 TSEK).

• Full-year 2024 net sales: 85,557 TSEK (down 3.3%); total revenue: 98,445 TSEK (down 1.2%).

• Full-year EBITDA: 5,054 TSEK (up from -4,538 TSEK); adjusted EBITDA: 6,621 TSEK (up from -1,456 TSEK).

• Full-year EBIT: -5,466 TSEK (up from -12,119 TSEK); adjusted EBIT: -3,893 TSEK (up from -9,037 TSEK).

• Q4 EPS: 0.06 SEK (up from -0.13 SEK); full-year EPS: -0.35 SEK (up from -0.92 SEK).

• Q4 operating cash flow: 7,065 TSEK (up from 551 TSEK); full-year: 7,981 TSEK (up from -870 TSEK).

• Cash and cash equivalents at year-end: 18,080 TSEK (down from 22,361 TSEK).

• ARR at year-end: 71,783 TSEK, down 1.2% sequentially.

Outlook and guidance

• New financial targets for 2026: ARR above 90 MSEK, net sales above 95 MSEK, and positive EBIT margin, assuming organic growth and stable headcount.

• Management expects increased business activity and improved profitability in 2025, supported by a diversified customer base and enhanced product portfolio.