Time People Group (TPGR) Q1 2025 earnings summary

Executive summary

• Revenue declined 27% year-over-year to 41.7 MSEK for May–July 2024, with operating results impacted by paused and prematurely ended client projects, and a lower billing rate across subsidiaries.

• Market demand remained weak, but some improvement in project leadership roles was noted before summer; a gradual recovery is anticipated towards year-end, supported by expectations of lower interest rates and inflation.

• Leadership changes included new CEOs for subsidiaries and the recruitment of a new group CEO, Mikael Tjernlund, announced after the period.

• Launch of the new AI-driven service "Team Player" saw positive initial customer response, expected to drive future demand.

Financial highlights

• Net sales for the quarter were 41.7 MSEK (57.1 MSEK), a 27% decrease year-over-year.

• EBITDA was -4.0 MSEK (-3.1 MSEK), with an EBITDA margin of -9.5% (-5.4%).

• EBIT was -5.5 MSEK (-4.6 MSEK), including a goodwill amortization of 1.5 MSEK; EBIT margin was -13.2% (-8.1%).

• Net income after tax was -5.7 MSEK (-4.8 MSEK); EPS was -0.78 SEK (-0.66 SEK).

• Cash flow from operating activities was 1.7 MSEK (8.6 MSEK); cash and cash equivalents at period end were 2.8 MSEK (22.5 MSEK).

Outlook and guidance

• Market outlook remains uncertain, but a gradual recovery is expected with improved demand by late 2024 or early 2025, driven by macroeconomic factors.

• The company is prepared for a market upturn and is focusing on recruiting skilled consultants.