NowVertical Group (NOW) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 results, transforming from a loss-making to a profitable business, with Q4 revenue at $10.9M, up 94% year-over-year excluding divestitures, and net income of $0.6M.

• Integrated 12 acquisitions under a unified strategy, divesting non-core assets, and focusing on organic growth.

• Management equity ownership increased from 7% to approximately 27% through open market purchases and share issuances.

• Strategic focus on enterprise accounts, with top 30 accounts contributing 60% of revenue and $1M+ accounts growing from 3 to 8.

• FY 2024 net income was $1.6M, a turnaround from a $5.9M net loss in FY 2023.

Financial highlights

• Q4 2024 revenue reached $10.9M, a 94% year-over-year increase excluding divested businesses, and 8% on a reported basis.

• Q4 EBITDA was $2.6M, up 420% year-over-year, with a 24% EBITDA margin; adjusted EBITDA up 225%.

• Full-year 2024 revenue was $46.9M, down 9% year-over-year, but up 21% excluding divestitures; EBITDA margin for the year was 18%.

• Gross profit margin held steady at 52% for both Q4 and the full year; Q4 gross profit was $5.7M, flat year-over-year, up 37% excluding divestitures.

• Administrative expenses decreased 40% year-over-year in Q4 and 30% for FY 2024, supporting margin expansion.

Outlook and guidance

• Targeting a $50M revenue run rate and $10M EBITDA run rate in the near term, aiming for a 20% EBITDA margin.

• Aims to maintain EBITDA margins in the 15%-20% range while reinvesting profits for sustainable growth.

• No plans for capital raise or Nasdaq uplisting in the immediate future; focus remains on organic growth and operational efficiency.

• Leadership expresses confidence in sustained organic revenue growth and strong margins.