SNP Schneider-Neureither & Partner (SHF) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 performance with revenue up 21% to €116.0 million and order entry up 23%, driven by robust software and partner business momentum across all regions and segments.

• Profitability surged, with H1 EBIT at €12.5 million (+257% YoY) and net profit at €7.9 million (+397% YoY), supported by a major legal settlement.

• Partner business accounted for 54% of H1 order entry, with strong S/4HANA and RISE project momentum and strategic market expansion.

• Settlement of a major legal dispute with the Community of Heirs, approved by shareholders, removed a key uncertainty and contributed a one-off gain of up to €3.5 million to EBIT.

• Strategic acquisitions, including Trigon Group, strengthened consulting capabilities and contributed to order entry and revenue.

Financial highlights

• H1 2024 revenue reached €116.0 million (+21% YoY); Q2 revenue was €62.0 million (+28% YoY); software revenue up 64% YoY in Q2.

• H1 EBIT was €12.5 million (+257% YoY), with EBIT margin at 10.7% in H1 and 13.6% in Q2; net profit was €7.9 million (+397% YoY); EPS improved to €1.09.

• Operating cash flow turned positive at €4.7 million in H1 (from €-9.0 million in H1 2023); free cash flow was €6.0 million in H1.

• Order backlog increased 42% YoY to €199.2 million as of June 30, 2024.

• Two mega-deals in Q2 contributed €17 million in order entry, with one deal having a 65% software share.

Outlook and guidance

• 2024 revenue guidance raised to €225–240 million (previous: €215–225 million); EBIT guidance increased to €16–20 million (previous: €13–16 million).

• Midpoint of revenue guidance improved by €12.5 million, mostly organic; EBIT midpoint up by €3.5 million.

• Book-to-bill ratio remains above 1, indicating sustained demand and continued optimism for H2, especially in the EXA segment and strategic growth markets.