Secunet Security Networks (YSN) Q3 2024 earnings summary

Executive summary

• Revenue and EBIT increased significantly year-over-year for the first nine months of 2024, driven by strong demand in the Public Sector and ongoing positive order trends.

• Management anticipates a strong fourth quarter, supported by a high order backlog and seasonal momentum.

Financial highlights

• Revenue rose by 7% to €254.8 million for 9M 2024 compared to €239.0 million in 9M 2023; Q3 2024 revenue increased by 26% year-over-year to €110.5 million.

• EBIT surged by 82% to €17.6 million for 9M 2024, up from €9.7 million in 9M 2023; Q3 EBIT nearly tripled to €16.1 million.

• Gross profit grew 29% to €55.7 million, aided by higher sales and a lower material cost ratio.

• Operating cash flow improved to €20.9 million from -€6.6 million year-over-year, driven by higher earnings and lower tax payments.

Outlook and guidance

• Revenue guidance for 2024 was raised to slightly above €400 million (previously ~€390 million).

• EBIT guidance for 2024 remains unchanged at approximately €42 million.

• High order backlog and typical seasonal year-end dynamics support the positive outlook.

• Long-term growth trend remains intact, with continued strategic investments in cloud and security technologies.