Logo Yazilim (LOGO) Q3 2024 earnings summary

Executive summary

• Revenue for 9M24 reached TL 3,648 million, up from TL 3,063 million year-over-year.

• Net profit attributable to equity holders was TL 318 million, a significant increase from TL 174 million in the prior year period.

• Adjusted EBITDA for the period was TL 1,333 million, compared to TL 1,071 million for the same period last year.

• Recurring revenue increased to 70% of total invoiced revenues, up from 67% in 9M23.

• SaaS revenue growth remained robust, particularly in Türkiye and international subsidiaries, with SaaS service income rising to TL 914 million.

Financial highlights

• Gross profit rose to TL 2,984 million from TL 2,522 million year-over-year.

• Q3 2024 revenue up 20% year-over-year to TL 1,168 mn; EBITDA up 23% to TL 351 mn; net income up 175% to TL 111 mn.

• Excluding IAS29, Türkiye revenue up 86% and EBITDA up 67% year-over-year in 9M24.

• Total Soft revenue up 21% year-over-year to TL 970 mn; EBITDA up 133% to TL 209 mn; net income up 687% to TL 52 mn.

• Earnings per share increased to TL 3.39 from TL 1.82 year-over-year.

Outlook and guidance

• 2024 guidance: Türkiye expects 30% invoiced revenue growth, 34% IFRS revenue growth, and ~15% EBITDA growth; EBITDA margin ~25%.

• Excluding IAS29, Türkiye expects 105% invoiced revenue growth and 73% EBITDA growth.

• Total Soft expects 11% Euro revenue growth and 24% EBITDA margin.

• The Group expects continued growth in SaaS revenues, especially from fintech services, as new products are launched.

• Economic assumptions: 2024 year-end inflation at 45%, average USD/TL 36.6, year-end USD/TL 43.0.