PSI Software (PSAN) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 declined by 3.8% year-over-year to €177.4 million, mainly due to the impact of a cyberattack in February 2024.

• Net result for the period was a loss of €24.1 million, significantly worse than the €7.1 million loss in the prior year period.

• Operating result (EBIT) for the nine months was negative at €-19.4 million, with a slight improvement to break-even in Q3.

• Incoming orders fell 16.8% year-over-year to €198 million, and order backlog decreased by 5.5% to €188 million.

• Operations largely normalized by May after the cyberattack, with enhanced IT security measures being implemented.

Financial highlights

• Cash and cash equivalents dropped 41.8% year-over-year to €27.4 million as of September 30, 2024.

• Cash flow from operating activities was negative €34.2 million, impacted by the cyberattack and one-off working capital changes.

• Earnings per share (EPS) for the nine months was €-1.59, compared to €-0.52 in the prior year period.

• PSI stock price declined 11.9% year-to-date, underperforming the TecDAX index.

Outlook and guidance

• Full-year 2024 sales are expected to be reduced by up to €25 million due to the cyberattack, with negative EBIT up to €-15 million.

• No further costs from the cyberattack are anticipated in Q4 2024; significant improvement in cash and cash equivalents is expected in Q4.

• Group structure simplification and new segment reporting will be implemented from Q4 2024.