Planisware (PLNW) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue reached €47.0 million, up 18.7% year-over-year in constant currencies, driven by SaaS growth and a shift toward recurring revenue.

• Revenue growth for the first nine months of 2024 was 19.3% year-over-year in constant currencies.

• Commercial pipeline remains at a record high, but customer decision-making delays, especially in France and the automotive sector, have impacted contract signatures and project starts.

• Profitability improved due to operational efficiency, strict hiring controls, and a better activity mix.

• 2024 objectives revised downward to reflect uncertainties in contract closings and a focus on profitability improvement.

Financial highlights

• Q3 2024 recurring revenue was €41.4 million, up 21.2% year-over-year in constant currencies; non-recurring revenue was €5.6 million, up 8.7%.

• SaaS & Hosting revenue grew 22.3% year-over-year; support activities up 26.1%.

• Perpetual license revenue rose 58.0% year-over-year, mainly in North America and Germany.

• Implementation revenue declined 7.9% due to faster project delivery and delayed project starts.

• FX effects from EUR appreciation had a minor negative impact on reported results.

Outlook and guidance

• 2024 revenue growth target revised to 17–18% in constant currencies, down from ~19.5%, reflecting uncertainty in deal closures.

• Adjusted EBITDA margin target raised to approximately 34% for 2024, citing operational efficiency and activity mix.

• Cash conversion rate guidance maintained at ~80%.

• Guidance assumes no further deterioration in sectors beyond automotive; pipeline remains strong.

• Cautious Q4 outlook due to uncertainties in contract closures and project starts.