Crayon Group (CRAYN) Q4 2024 earnings summary

Executive summary

• Achieved full-year Adjusted EBITDA margin of 18.7%, up from 16.2% in 2023, driven by improved margins in software, cloud, and consulting businesses.

• Q4 2024 gross profit rose 2% year-over-year to NOK 1,637m, with adjusted EBITDA up 33% to NOK 321m and net income improving to NOK 42m from a NOK 123m loss last year.

• Record-setting net working capital performance, improving NOK 352m year-over-year, and strong organizational response to 2024 challenges.

• Strategic public sector wins and improved consulting profitability contributed to results.

• SoftwareOne announced a recommended offer to acquire all shares, with completion expected in Q2 2025.

Financial highlights

• 2024 gross profit was NOK 6,283m, up 11% year-over-year; Q4 gross profit reached NOK 1,637m, up 2%.

• Adjusted EBITDA for 2024 was NOK 1,174m, up 28%; Q4 adjusted EBITDA margin improved to 19.6% from 14.9% last year.

• Net profit for Q4 was NOK 42m, an improvement of NOK 165m from Q4 2023; EPS for Q4 2024 was NOK 0.48, up from -0.87.

• Operating cash flow in Q4 was NOK 1,889m, with liquidity reserve at NOK 3,518m at year-end.

• Leverage ratio (net debt/EBITDA) improved to 0.3x, with net interest-bearing debt at NOK 361m.

Outlook and guidance

• 2025 outlook: gross profit growth of 15%-20%, Adjusted EBITDA margin of 19%-22%, and net working capital at approximately -15%.

• Growth expected to accelerate in the second half of 2025, with Q4 2024 seen as an isolated event.

• Medium-term ambition is a gradual increase in EBITDA margin to 25%.

• Focus on scaling CSP, multi-cloud offerings, and value-added services, with hiring in key growth areas.

• Seasonality expected to continue, with Q2 and Q4 typically stronger for volume and EBITDA.