Soluciones Cuatroochenta (480S) Q4 2024 earnings summary

Executive summary

• Revenue grew 23% year-over-year to €27.6M, surpassing sector forecasts for 2024.

• Annual Recurring Revenue (ARR) reached €19.35M, up 28% year-over-year, with 47% of sales outside Spain, reflecting strong international expansion.

• EBITDA hit a record €3.24M, up 57% year-over-year, with an EBITDA margin of 11.74%.

• Net profit reached €1.13M, a sixfold increase year-over-year, driven by improved EBITDA and contributions from equity-accounted investments.

• Eiffel Investment Group SAS invested €2M via convertible bonds to fund inorganic growth.

Financial highlights

• Revenue: €27.6M (+23% YoY); ARR: €19.35M (+28% YoY).

• EBITDA: €3.24M (+57% YoY), margin 11.74% (+252bps YoY).

• Net profit: €1.13M (+556% YoY); Operating cash flow: €5.11M.

• Net financial debt reduced by €2.9M; DFN/EBITDA at 1.5x, lowest in five years.

• 2024 BME Growth share price up 58%; trading volume +48% year-over-year.

Outlook and guidance

• 2025 organic revenue growth target above 10%, with continued focus on M&A to enhance product suite.

• Management expects to maintain double-digit EBITDA margins and further international expansion.

• No acquisitions in 2024, but active analysis of B2B SaaS and cybersecurity targets resumed.

• Agreement with Eiffel Investment Group for €2M convertible bonds to support future inorganic growth.

• Foundations laid for expansion into Mexico.