Digital Workforce Services (DWF) Q2 2024 earnings summary

Executive summary

• Revenue increased by 8.5% year-over-year to EUR 13.7 million for H1 2024, with Q2 revenue up 14.4% to EUR 7.0 million.

• Profitability improved: EBITDA for H1 was EUR 0.5 million (up from EUR 0.1 million), and operating profit reached EUR 0.3 million (up from EUR 0.0 million).

• Growth was driven by strong performance in Continuous Services, especially in healthcare and new customer acquisition.

• Strategic focus on hyperautomation and AI-based solutions, with a new partnership to integrate AI agents into the Outsmart platform.

Financial highlights

• Q2 revenue: EUR 7.0 million (+14.4% year-over-year); H1 revenue: EUR 13.7 million (+8.5%).

• Q2 EBITDA: EUR 0.2 million (vs. EUR -0.1 million); H1 EBITDA: EUR 0.5 million (vs. EUR 0.1 million).

• Q2 operating profit: EUR 0.1 million (vs. EUR -0.2 million); H1 operating profit: EUR 0.3 million (vs. EUR 0.0 million).

• Gross margin improved to 37.0% in H1 (from 34.2%); Q2 gross margin at 38.0% (from 32.6%).

• EPS for H1: EUR 0.03 (vs. EUR 0.02); cash and liquid assets at period end: EUR 11.5 million.

Outlook and guidance

• Full-year 2024 revenue expected to exceed 2023; adjusted EBITDA projected to be positive and improve over 2023.