Logo Yazilim (LOGO) Q2 2024 earnings summary

Executive summary

• Consolidated revenue for H124 rose 19% year-over-year to TL 2,277 mn, with EBITDA up 25% to TL 827 mn, despite macroeconomic volatility.

• SaaS and recurring revenues grew strongly, with SaaS up 18% year-over-year and now 33% of total revenues.

• Net profit attributable to equity holders declined to TL 190.2 mn, impacted by inflation accounting and monetary losses.

• Significant investments continued in R&D, SaaS, and expansion in Turkey and Romania.

• Announced and signed agreements for a 65% stake sale in Total Soft, with further increase to 85% by 2027.

Financial highlights

• H124 consolidated revenue was TL 2,277 mn, up 19% year-over-year; EBITDA reached TL 827 mn, up 25%; net income was TL 297 mn, down 36%.

• Gross profit for the period was TL 1,852.2 mn, up from TL 1,543.8 mn year-over-year.

• Q224 revenue was TL 1,225 mn, up 18% year-over-year; EBITDA was TL 516 mn, up 44%; net income was TL 229 mn, down 42%.

• Earnings per share for the period were TL 2.02, down from TL 3.08 year-over-year.

• Cash and cash equivalents at period end were TL 260 mn, down 57% from 2023.

Outlook and guidance

• Logo Türkiye expects 30% invoiced revenue growth, 34% IFRS revenue growth, ~15% EBITDA growth, and ~25% EBITDA margin for 2024.

• Total Soft targets 11% Euro revenue growth and 24% EBITDA margin for 2024.

• Fintech subsidiary Logo Ödeme to begin operations, aiming to boost SaaS revenues.

• Ongoing R&D and digital transformation investments to support long-term growth.

• 2024 year-end inflation expected at 45%; average USD/TL rate at 36.6.