Soluciones Cuatroochenta (480S) Q3 2024 earnings summary

Executive summary

• Net revenue for the nine months ended September 30, 2024, reached €20.1 million, up 23% year-over-year.

• EBITDA increased by 33% to €2.1 million, with EBITDA margin rising to 10.5% from 9.8% year-over-year.

• Net income grew 160% to €0.7 million compared to the same period last year.

Financial highlights

• Operating income rose 64% to €1.0 million; pre-tax profit up 70% to €0.86 million year-over-year.

• Personnel expenses and other operating costs increased by 8% and 12%, respectively.

• Financial result was a loss of €0.46 million, 19% higher than the previous year.

• Recurring revenues reached €13.0 million, representing 73% of total revenue.

• Annual Recurring Revenue (ARR) was €17.8 million, up 6% from June 2024.

Segment performance

• Sofistic's growth led to higher third-party license sales, impacting the cost mix but improving margins.

• Internal reorganization in Sofistic resulted in a simpler structure and better margins.

• The group continues to focus on process optimization, partner search, and internationalization in core product lines.