Columbus (COLUM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 9% year-over-year to DKK 427m, mainly from Cloud ERP (Dynamics and M3), which now represents 75% of operations.

• EBITDA increased to DKK 30m (margin 7.0%), up 2.4 percentage points year-over-year, reflecting improved project profitability and cost management.

• Recurring revenue rose 13% to DKK 60m, supported by the Endless Gain acquisition and now representing 14% of total revenue.

• Profit before tax declined by DKK 5.7m to DKK -7.9m, impacted by extraordinary adjustments and an DKK 18.8m goodwill impairment in Security.

• Streamlining included a reduction of ~60 FTEs, management restructuring, and integration of Security into Dynamics.

Financial highlights

• Q2 2024 net revenue: DKK 426.9m (+9% year-over-year); H1 2024: DKK 871.1m (+12%).

• EBITDA Q2 2024: DKK 30.0m (margin 7.0%); H1 2024: DKK 85.2m (margin 9.8%, or 7.5% excluding a DKK 20m legal gain in Q1).

• Cash flow from operating activities improved to DKK 16m in Q2 2024.

• Contribution margin for Dynamics was 28%, M3 at 14%, Digital Commerce at -4%, Security at -68%.

• Earnings per share (EPS) from continuing operations Q2 2024: DKK -0.10.

Outlook and guidance

• 2024 guidance maintained: organic revenue growth of 8–10% and EBITDA margin of 9–10%.

• Mid-term target remains 15% EBITDA margin by 2026, supported by efficiency and commercial excellence programs.

• Management notes ongoing macroeconomic, exchange rate, and geopolitical uncertainties could impact growth and margins.