Omda (OMDA) Q3 2024 earnings summary

Executive summary

• Q3 2024 income reached NOK 103.2 million, up 3–4% year-over-year, with recurring revenue at 81–83% of total sales and a major oncology software contract win.

• EBITDA margin was 21%, down from 27% in Q3 2023, mainly due to Emergency business underperformance.

• Decentralization, FTE reduction, and divestment of CSAM Philippines are key ongoing margin improvement initiatives.

• Recurring revenue remains strong with minimal churn, supported by public healthcare clients and long-term contracts.

• Further FTE reductions and increased M&A activity are planned.

Financial highlights

• Total income for Q3 2024 was NOK 103.2 million, with recurring software revenue at NOK 83 million and organic growth of 3% in constant currency.

• EBITDA for the quarter was NOK 22 million, representing a 21% margin.

• Gross margin improved to 93%, with COGS at NOK 6.7 million, and salary costs at 56.9% of income.

• Capex for the quarter was NOK 9.2 million, or 8.3–9% of total sales.

• FTEs at quarter-end: 271, with further reductions expected.

Outlook and guidance

• Margin improvements are expected as FTE reductions and decentralization take effect in Q4 2024 and Q1 2025.

• Focus remains on organic growth, margin improvement, cash discipline, and smart acquisitions.

• Long-term organic growth forecast remains at 5–10% annually.