Witted Megacorp (WITTED) Q4 2024 earnings summary

Executive summary

• Achieved a turnaround in profitability after a challenging year, with strategic renewal and adaptation measures implemented.

• Revenue declined 16.6% year-over-year to €53.5 million, but adjusted EBITA improved to €1.2 million (2.2% of revenue).

• Cost-saving measures, including staff reductions and closure of Danish operations, yielded annual savings of €1 million.

• The board proposes a dividend of €0.02 per share for 2024.

Financial highlights

• Full-year revenue was €53.5M, down 16.6% year-over-year from €64.1M; Q4 revenue was €13.6M, down 15.2%.

• Adjusted EBITA improved to €1.2M (2.2% margin) from -€0.1M; EBITA rose to €0.6M (1.1% margin) from -€0.8M.

• Net loss for the year was €-0.4M, a significant improvement from €-1.6M; EPS for the year was €-0.03, up from €-0.10.

• Operating cash flow positive at €0.6M (2023: -€2.5M); net cash position at year-end €7.9M.

• Board proposes a €0.02 per share dividend.

Outlook and guidance

• Focus shifts to growth following the profitability turnaround.

• Strategic targets for 2024–2025: over 8% adjusted EBITA in Finland, positive adjusted EBITA in other countries.

• No specific financial guidance for 2025; monthly business reviews will be published.

• Plans to improve gross margin and the ratio of revenue to fixed costs by enhancing sales capabilities and organizational efficiency.