Medhelp Care (MEDHLP) Q4 2024 earnings summary

Executive summary

• Achieved strong profitability improvement for the full year, ending Q4 2024 with new customer wins and increased contracted annual recurring revenues (CARR).

• Q4 net sales declined 3.3% year-over-year to 21,246 TSEK, but gross profit and EBITDA rose significantly due to lower production costs and improved operational efficiency.

• Full-year net sales decreased 2.1% to 82,310 TSEK, while EBITDA margin improved to 16.9% from 11.8% and net income turned positive at 2,116 TSEK.

• Signed 20 new customers in H2 2024, including Avarn Security and a major Swedish telecom company, supporting future growth.

Financial highlights

• Q4 2024 net sales: 21,246 TSEK (down 3.3% year-over-year); full-year: 82,310 TSEK (down 2.1%).

• Q4 gross profit: 20,756 TSEK (up from 19,680 TSEK); gross margin: 88.2% (up from 82.4%).

• Q4 EBITDA: 3,804 TSEK (up from 2,185 TSEK); EBITDA margin: 17.9% (up from 10.0%).

• Full-year EBITDA: 13,905 TSEK (up from 9,892 TSEK); net income: 2,116 TSEK (vs. -11,010 TSEK prior year).

• CARR at year-end: 86,352 TSEK (up 4.2% year-over-year).

Outlook and guidance

• Management expects favorable conditions for growth in 2025, citing signs of economic recovery and a strong pipeline from recent customer wins.

• Continued focus on cost control, migration to the AI-driven health platform, and expansion of recurring revenues are expected to support profitability.