Humanica Public Company (HUMAN) Q3 2024 earnings summary

Executive summary

• Humanica is a leading HR solutions provider in Southeast Asia, serving over 5,000 clients and 2 million employees across 9 offices in Asia.

• The company focuses on holistic HR technology and services, with a strong presence in payroll outsourcing, HCM, and consulting.

• Humanica has a history of organic growth, strategic M&A, and platform partnerships, recently acquiring Tigersoft, DataOn, and SDP.

Financial highlights

• Year-to-date revenue grew by 10% (+95mb) to 1,038mb, with net profit up 4% (+10mb) compared to the same period last year.

• Q3-2024 revenue increased 4% year-over-year to 347mb, but net profit declined 26% due to higher staff costs and SG&A expenses.

• Gross profit margin dropped from 52% to 49% year-to-date, and from 54% to 48% in Q3, mainly due to increased staff costs.

• Operating profit rose 3% year-to-date but fell 32% in Q3 year-over-year.

• Effective tax rate increased as BOI tax privilege expired in July 2024.

Outlook and guidance

• Management highlights continued focus on organic growth, related M&A, and platform partnerships to drive expansion.

• The company targets underserved mid and upper-mid market segments in Southeast Asia, where competition is low and HR SaaS adoption is rising.