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Research

Digital Workforce: Slight profit warning raised uncertainty for next year

By Joni GrönqvistAnalyst
Digital Workforce
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Digital Workforce’s profit warning on Friday for 2023 was quite light. At the same time, the growth and profitability outlook for 2024 weakened. We believe new customer acquisition and project starts have progressed slower than expected, which depressed development. We now expect more moderate growth in the coming years than before but expect profitability to improve driven by revenue structure and more prudent investments. With our lowered estimates, the valuation (2023e EV/S 0.9x, sum of the parts EUR 4.5 and DCF EUR 6.0) is still attractive.

Digital Workforce is a service provider that specializes in process automation services on an industrial scale. The company's service offering covers the entire life cycle of intelligent automation: design and consulting, development and deployment, cloud-based platform, support and maintenance, and further development. The company offers services and solutions to a wide range of customers in various industries, including finance, healthcare, industry, logistics, and various public actors.

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Key Estimate Figures26.11.2023

202223e24e
Revenue25.524.425.7
growth-%13.9 %-4.3 %5.5 %
EBIT (adj.)-1.30.31.0
EBIT-% (adj.)-5.0 %1.1 %3.8 %
EPS (adj.)-0.150.030.08
Dividend0.000.000.00
Dividend %
P/E (adj.)neg.125.748.6
EV/EBITDAneg.94.321.7
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