Vincit (VINCIT) Q3 2024 earnings summary

Executive summary

• Revenue declined 15.1% year-over-year in Q3 2024 to EUR 18.4 million, with continued weak sales and postponed customer investments.

• EBITA and adjusted EBITA margins fell, and the group posted a net loss for both Q3 and the nine-month period.

• Cost-saving measures, including office consolidation, are expected to reduce annual operating costs by EUR 2 million.

• Updated 2024 guidance lowered revenue and profitability expectations due to weaker demand.

Financial highlights

• Q3 2024 revenue: EUR 18.4 million (down 15.1% year-over-year); nine-month revenue: EUR 63.2 million (down 15.2%).

• Q3 EBITA: EUR 0.8 million (4.3% margin); adjusted EBITA: EUR 0.8 million (4.4% margin).

• Q3 EBIT: EUR -0.2 million; EPS: EUR -0.03.

• Nine-month EBITA: EUR 0.7 million (1.1% margin); adjusted EBITA: EUR 1.2 million (1.9% margin).

• Nine-month EBIT: EUR -2.3 million; EPS: EUR -0.16.

• Personnel costs decreased by 13.6% year-over-year.

Outlook and guidance

• 2024 revenue expected at EUR 82–87 million, with EBITA margin of 0–2%.

• Previous guidance anticipated improved profitability, but this was revised downward in October 2024.

• Strategic targets for 2023–2025 include 20% annual revenue growth and adjusted EBITA over 10% of revenue.