NTG Clarity Networks (NCI) Q4 2024 earnings summary

Executive summary

• 2024 marked a breakout year with revenue up 102% year-over-year to CAD 56 million (or $56.1M), surpassing guidance and driven by strong demand in Saudi Arabia, which accounts for 95% of revenue.

• Net income rose 326% to CAD 9.9 million, with a net income margin of 18%, more than doubling the prior year's margin and beating guidance.

• Customer base expanded by 25%, with 90% retention and 54% of existing customers increasing engagement; average revenue per customer rose 75%.

• Company benefited from macroeconomic tailwinds and is insulated from tariff-related uncertainty.

• Multi-year contracts added CAD 80 million to backlog, providing strong revenue visibility.

Financial highlights

• Q4 2024 revenue grew 109% year-over-year to CAD 17.2 million, with a gross margin of 36%, up from 18% in Q4 2023.

• Gross profit increased 137% to $20.8M (37% margin), up from $8.8M (32%) year-over-year.

• Adjusted EBITDA reached CAD 12.3 million (22% margin), and operating cash flow was CAD 2.6 million, with free cash flow at CAD 1.6 million.

• EPS (basic) was $0.23, up from $0.01 in 2023.

• Operating expenses as a percentage of revenue declined, with sales expenses dropping from 10% to 4% and G&A from 12% to 10%.

Outlook and guidance

• 2025 revenue guidance is CAD 75 million (or $75M), representing 34% year-over-year growth.

• Adjusted EBITDA margin guidance for 2025 is 16%-20%, reflecting investments in scaling and training.

• Backlog exceeds $105M, with $80M secured in three-year contracts, providing strong revenue visibility.

• Guidance reaffirmed despite global uncertainties and potential tariff impacts.

• Strategic investments in hiring, training, and operational scale prioritized for sustainable growth.