Soluciones Cuatroochenta (480S) Q2 2024 earnings summary

Executive summary

• Revenue reached €13.2M in H1 2024, up 23.8% year-over-year, with EBITDA at €1.18M, up 19.5%.

• Net income turned positive at €0.22M versus a €0.10M loss in H1 2023.

• Strong organic growth, especially in cybersecurity (Sofistic), and increased international sales (45% outside Spain).

• Recurring annual revenue (ARR) rose 10.9% to €16.8M, with 71.7% of total group revenue now recurring.

• No significant events or transactions altered the financial position; growth was mainly organic.

Financial highlights

• Sales grew 23.8% year-over-year to €13.2M; EBITDA margin at 8.9%.

• Operating cash flow improved to €2.03M from €1.35M in H1 2023.

• Net financial debt reduced to €6.99M, with DFN/EBITDA at 3.1x (down from 3.73x at 2023 year-end).

• International sales increased to 45% of total, up from 33% a year earlier.

• Sofistic unit sales up 47% year-over-year, reaching €5.4M.

Outlook and guidance

• Management expects continued growth in recurring revenue and international expansion, especially in Latin America.

• The company maintains a moderate debt level, supporting potential inorganic growth opportunities.

• No significant liquidity risks identified; positive cash flow projections support ongoing operations.