Water Intelligence (WATR) Q3 2024 TU earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 increased by 10% to $63.5 million, in line with market expectations.

• Statutory profit before tax grew by 7% to $6.1 million, with adjusted PBT up 6% to $7.7 million year-over-year.

• Statutory EBITDA rose 12% to $10.9 million, and adjusted EBITDA increased 11% to $11.9 million compared to the same period last year.

• US Corporate sales grew 13% and International Corporate sales rose 26% year-over-year.

• The company executed on all four prongs of its capital allocation plan, positioning for accelerated growth in 2025.

Financial highlights

• Franchise royalty decreased by 3% to $5.2 million due to franchise acquisitions.

• Franchise-related activities declined 5% to $8.3 million; insurance business-to-business channel down 6% to $7.8 million.

• Adjusted PBT and EBITDA margins remained steady at 12% and 19%, respectively.

• Cash and equivalents stood at $12.7 million; total debt at $23.6 million with a fixed annual rate of 6.35%.

• Net Debt to Statutory EBITDA TTM ratio was 0.84, indicating a strong balance sheet.

Outlook and guidance

• Execution of capital allocation plan expected to drive strong growth in 2025 and beyond.

• Launch of a five-year growth plan and leadership changes to support future expansion.

• Continued focus on organic growth, new technology rollouts, and strategic acquisitions.