LeadDesk (LEADD) Q2 2024 earnings summary

Executive summary

• Achieved 7.2% revenue growth on a comparable currency basis in H1 2024, with revenue reaching EUR 15.47 million and ARR up 9.7% to EUR 27.01 million.

• International operations now represent 65% of revenue and ARR, driven by double-digit growth in Continental Europe SMEs.

• AI investments and new features (AI Bot, AI Writer, AI Dialer, AI Analyst, AI Transcriber) are central to strategy and customer value, with rapid deployment and milestones in call data transcription.

• Completed acquisition of Telemagic in May/June 2024, strengthening the Nordic market position and adding to recurring revenue; Länsilinkki integration improved group profitability.

• Uncertainties persist in the Nordic SME market, especially in Finland, due to macroeconomic conditions.

Financial highlights

• H1 2024 revenue reached EUR 15.47 million, up 6.9% year-over-year (7.2% in comparable currencies).

• Annual recurring revenue contract base at EUR 27.01 million, up 9.7% in comparable currencies.

• EBITDA for H1 2024 was EUR 2.08 million (13.4% of revenue), up from EUR 1.81 million (12.6%) in H1 2023.

• Operating cash flow after interest and taxes was EUR 2.60 million, up from EUR 1.74 million, aided by changes in invoicing cycles.

• EBIT remained negative at -2.9% of revenue; result for the period was EUR -859 thousand.

Outlook and guidance

• 2024 guidance unchanged: expects 5–15% annual revenue growth (comparable currency) and 10–15% EBITDA margin; guidance excludes impact of significant acquisitions.

• Expecting more revenue in H2 from large enterprise deals signed in H1 and continued focus on organic growth, efficiency, AI progress, and M&A activity.

• Double-digit growth in Continental Europe expected to continue, with potential for further acceleration through targeted sales investment.