Itera (ITERA) Q3 2024 earnings summary

Executive summary

• Revenue declined 5% year-over-year in Q3 2024, mainly due to lower consultant utilization and a temporary loss of a major customer, but the customer has returned, benefiting future quarters.

• Secured two large agreements worth up to NOK 500 million over four years, including a NOK 300 million framework with IMDi and a NOK 200–250 million renewal with Kredinor.

• Opened a new office in Stavanger through the acquisition of Revo and Mosaique, adding 20 employees and expanding presence in the energy and offshore sectors.

• Continued focus on sustainable digital transformation, cloud, and AI, with internal AI platform Sapiens deployed for all employees.

• Launched the "Housing for Ukraine" initiative, including a pilot project to build homes for war-affected families.

Financial highlights

• Q3 2024 revenue was NOK 184.2 million, down 5% year-over-year; year-to-date revenue down 2%.

• EBIT margin for Q3 was 0.1%, down from 4.5% last year; EBITDA margin at 4.5% for the quarter.

• Cash flow from operations was NOK 6.2 million in Q3 and NOK 82 million for the last 12 months.

• Dividend payout for 2024 totals NOK 0.60 per share, including a supplementary NOK 0.20 per share in December.

• Cash and cash equivalents at quarter-end were NOK 29.8 million, down from NOK 42.2 million a year earlier.

Outlook and guidance

• Market conditions are gradually improving, with increased sales activity, RFPs, and a growing pipeline in the Nordics and Ukraine.

• Most sectors are expected to return to growth in 2025, with energy and offshore sectors remaining strong.

• Focus remains on profitable growth, cash generation, and leveraging opportunities in cloud, AI, and the new Stavanger office.

• Connecting Ukraine and the Nordics is a strategic priority for enabling the green energy shift and Ukraine's rebuilding.

• Profitability expected to improve as new and extended agreements scale up.