RaySearch Laboratories (RAY) Q4 2024 earnings summary

Executive summary

• Net sales reached SEK 323 million in Q4 2024, up 8% year-over-year, and SEK 1.192 billion for the full year, up 17% year-over-year, marking a record high.

• Operating profit was SEK 74 million in Q4 (23% margin) and SEK 260 million for the year (22% margin), both significantly improved from prior year and exceeding the 2026 margin target.

• Support revenue grew 14% in 2024, now 40% of total sales, driven by new license sales and high customer retention.

• Board proposed increasing the dividend to SEK 3 per share, reflecting strong financial position and outlook.

• Strong cash position of SEK 463 million at year-end, with stable cash flow and no loans.

Financial highlights

• Q4 order intake was SEK 305 million, down 4% year-over-year; full-year order intake grew 8% to SEK 1.087 billion.

• License sales in Q4 were SEK 160 million, up 16% year-over-year; support revenue was SEK 131 million, up 9%.

• Full-year license revenue was SEK 575.5 million (+30%), support revenue SEK 472.9 million (+14%), and hardware revenue SEK 109.2 million (down from SEK 128.4 million).

• Q4 profit after tax was SEK 60 million; full-year profit after tax was SEK 203.5 million.

• Cash flow from operations in Q4 was SEK 103 million; full-year cash flow from operations improved to SEK 485 million.

Outlook and guidance

• Positive outlook for order intake and revenue growth in 2025, with continued momentum expected.

• Operating margin target raised to at least 25% by 2026, up from previous 20%, after exceeding the target in 2024.

• No drastic changes in OPEX planned for 2025; growth in headcount and investments to continue at a similar pace as previous years.