Visma (VISMA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached €694 million, up 17% year-over-year, with 12.7% organic growth.

• EBITDA grew 26% to €256 million, expanding margin by 2.7 percentage points to 36.8%.

• Annualized Repeatable Revenue (ARR) hit €2.57 billion, up 18% year-over-year.

• Customer base expanded 18% to 1.9 million, with strong growth across all segments.

• Six acquisitions completed, strengthening positions in France, Germany, Denmark, Netherlands, and Chile.

Financial highlights

• SaaS revenue grew 22% year-over-year, now 77% of total revenue; cloud-based share near 90%.

• EBIT reached €149 million, up 41% from Q3 2023.

• Adjusted net income was €144 million, up 10% year-over-year, excluding M&A-related items.

• Free cash flow was €245 million, up 51% year-over-year, with 99.5% cash conversion LTM.

• Net debt/EBITDA remained stable at 2.6x.

Outlook and guidance

• Global growth expected to remain resilient, but core European markets face below-average growth.

• Visma expects continued double-digit organic growth, low churn, and high new customer acquisition.

• Ongoing geopolitical tensions seen as main risk; easing interest rates could provide a tailwind.

• Active M&A agenda anticipated for Q4, with substantial growth opportunities in existing and new markets.