Modelon (MODEL) Q4 2024 earnings summary

Executive summary

• Annual recurring revenue (ARR) grew 19% year-over-year to MSEK 60.0, driven by strong Modelon Impact performance.

• Net revenue for 2024 increased 6% to MSEK 83.6, with software revenues up 9% to MSEK 58.1.

• Adjusted EBIT improved to MSEK -49.4 from -55.3, reflecting cost efficiency measures.

• Net loss for the year was MSEK -59.4, with EPS at SEK -4.23 before dilution.

• No dividend proposed for 2024; focus remains on growth and operational efficiency.

Financial highlights

• Q4 net revenue rose 10% year-over-year to MSEK 22.8; software revenue up 9% to MSEK 15.7.

• Q4 ARR reached MSEK 60.0, up 19% year-over-year and 6% sequentially from Q3.

• Q4 adjusted EBIT was MSEK -11.6, an improvement from -14.6 in Q4 2023, excluding non-recurring tax items.

• Cash flow from operations in Q4 was MSEK -11.4, improved from -18.7 year-over-year.

• Cash balance at year-end was MSEK 62.6, with total available liquidity of MSEK 72.6.

Outlook and guidance

• Ambition to achieve software ARR growth above 20% and positive free cash flow by 2026.

• Long-term target for EBIT margin above 20%.

• Updated financial targets announced in February 2025.