Vertiseit Year-end Report January-December 2024
At the end of the fourth quarter of 2024, Vertiseit's ARR (Annual Recurring Revenue) amounted to 275.1 MSEK (160.8), an increase of 65.8 percent at constant exchange rates, of which 18.7 percent was organic growth. SaaS revenue (Software as a Service) for the quarter increased by 28.1 MSEK to 71.0 MSEK (42.9). Sequentially, ARR grew by 44.7 percent compared to the previous quarterat constant exchange rates. Net revenue increased by 132.0 percent to 202.8 MSEK (87.4), partly driven by the acquisition of Visual Art. Adjusted EBITDA for the quarter increased to 32.9 MSEK (20.5), corresponding to an adjusted EBITDA margin of 16.2 percent (23.5). Free cash flow for the quarter amounted to 3.1 MSEK (9.6).
THE QUARTER OCTOBER - DECEMBER 2024
- At the end of the quarter, ARR (Annual Recurring Revenue) amounted to 275.1 MSEK (160.8), representing an increase of 65.8 percent compared to the previous year at constant exchange rates, of which 18.7 percent was organic growth. SaaS revenue (Software as a Service) for the quarter increased by 28.1 MSEK to 71.0 MSEK (42.9).
- Sequentially, ARR grew by 44.7 percent compared to the previous quarter at constant exchange rates. Organic growth amounted to 3.6 percent, corresponding to an annual organic growth rate of 15.4 percent.
- Net revenue increased by 132.0 percent to 202.8 MSEK (87.4), partly driven by the acquisition of Visual Art.
- Adjusted EBITDA amounted to 32.9 MSEK (20.5), with an adjusted EBITDA margin of 16.2 percent (23.5). During the quarter, adjustments were made for extraordinary costs of 2.3 MSEK related to the acquisition of Visual Art, which was completed in the fourth quarter.
- Net profit after tax amounted to 11.7 MSEK (5.7).
- Free cash flow for the quarter amounted to 3.1 MSEK (9.6). Available liquidity at the end of the period was 83.5 MSEK (60.4).
- Earnings per share, before and after dilution, amounted to 0.43 SEK and 0.38 SEK, respectively (0.28 and 0.25).
EVENTS DURING AND AFTER THE QUARTER
- On January 31, Vertiseit’s subsidiary Visual Art signed an agreement for software and consulting services with Kentucky Fried Chicken (KFC) Great Britain Ltd. The agreement covers all of KFC’s more than 1,000 restaurants in the United Kingdom and includes more than 5,000 SaaS licenses. The minimum contractual SaaS revenue from the agreement amounts to approximately 5 MSEK per year.
- On October 2, Vertiseit acquired all outstanding shares in Visual Art Sweden AB. The acquisition valued Visual Art at 457 MSEK, financed through bank loan, the issuance of warrants, and a directed share issue.
- At an extraordinary general meeting of Vertiseit on October 28, a resolution was passed for a directed share issue of approximately 250 MSEK. Approximately 50 MSEK was directed to selling shareholders of Visual Art, and approximately 200 MSEK to Bonnier Capital AB, which thereby became the largest shareholder in Vertiseit in terms of capital.
- The Board’s proposal to the 2025 Annual General Meeting is that no dividend will be distributed to shareholders for the 2024 financial year, in line with the company’s financial targets.
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