Visma (VISMA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached €699 million, up 21% year-over-year, with EBITDA of €222 million, up 35% year-over-year, and margin expansion of 3.3 percentage points.

• Annualized Repeatable Revenue (ARR) grew 21% to €2,538 million, with customer base expanding 18.6% to 1.9 million.

• Nine acquisitions closed, including first entries into Italy and Croatia, and further expansion in France, Denmark, Sweden, and Belgium.

• Adjusted net income rose 58% year-over-year to €137 million.

Financial highlights

• Organic revenue growth was 12.6% year-over-year; SaaS revenue grew 26.9%.

• EBIT reached €111 million, up 50% from Q2 2023.

• Free cash flow was €113 million, with a cash conversion rate of 95.9% LTM.

• Net debt/EBITDA stood at 2.8x at quarter-end.

• Cash position at quarter-end was €953 million.

Outlook and guidance

• Despite mixed global economic signals and persistent high interest rates, demand for mission-critical cloud solutions remains solid.

• Visma expects continued growth opportunities in both existing and new markets, maintaining an active M&A agenda into Q3.

• Inflationary pressures are easing, but pricing environment is softer across the software industry.