Ctac (CTAC) H1 2024 earnings summary

Executive summary

• Revenue declined 4.6% year-over-year to €61.9 million in H1 2024, mainly due to lower hosting revenue and challenges in staffing optimization.

• EBITDA decreased 12.2% to €4.3 million, with net profit down 14.3% to €1.2 million compared to H1 2023.

• Strategy recalibration and increased focus on cloud solutions are showing early positive effects, with a growing pipeline and more cross-selling.

• Market remains cautious with fewer and smaller projects, but cloud-based license revenue is increasing.

Financial highlights

• H1 2024 revenue: €61.9 million (H1 2023: €64.9 million); Q2 2024 revenue: €31.3 million, stable sequentially.

• EBITDA: €4.3 million (H1 2023: €4.9 million); EBIT: €1.9 million (H1 2023: €2.3 million).

• Net profit: €1.2 million (H1 2023: €1.4 million); EPS stable at €0.09.

• Operating cash flow: negative €1.0 million (H1 2023: positive €1.9 million); net cash position: €2.4 million.

• Solvency improved to 41.7% at end-June 2024 (year-end 2023: 40.0%).

Outlook and guidance

• Full-year 2024 outlook maintained, with focus on protecting profitability and converting pipeline into orders.

• Expected growth in cloud services and ERP implementations due to strategic recalibration.