Columbus (COLUM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 8% year-over-year to DKK 371 million, with strong contributions from Cloud ERP, Dynamics, Data & AI, and CXE, and robust performance in Denmark and the UK.

• EBITDA increased 42% to DKK 29 million, with margin improving to 7.9% from 6.0% in Q3 2023.

• Recurring revenue rose 18% to DKK 59 million, now 16% of total revenue.

• Profit before tax increased by DKK 3.8 million, and cash flow from operating activities was strong at DKK 57 million.

• Management team strengthened with new Chief Marketing Officer and Chief People Officer, and 40 new Accelerator Program hires with 40% gender diversity.

Financial highlights

• Q3 2024 net revenue: DKK 371.4 million (+8% YoY); YTD: DKK 1,242.6 million (+10% YoY).

• Q3 EBITDA: DKK 29.4 million (+42% YoY); margin 7.9%. YTD EBITDA: DKK 114.6 million (+47% YoY); margin 9.2%.

• Recurring revenue reached DKK 59 million, up 18% YoY, now 16% of total revenue.

• Contribution margin for Dynamics was 30% in Q3; total business lines at 23%.

• Cash flow from operations Q3: DKK 56.8 million; equity ratio at 56.7%.

Outlook and guidance

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

• Mid-term EBITDA margin target of 15% supported by efficiency and commercial excellence.

• Ongoing macroeconomic, FX, and geopolitical uncertainties may impact growth and margins.

• Customers remain cautious, splitting IT investments into smaller projects.