SNP Schneider-Neureither & Partner (SHF) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 and 9M results, with Q3 revenue up 24% to €66.8 million and 9M revenue up 22% to €182.8 million, driven by strong customer focus, partner business, and SAP S/4HANA demand.

• Order entry increased 24% year-over-year to €209.5 million, with partner business contributing 47% and large projects fueling growth.

• EBIT for Q3 rose 70% to €8.2 million, and for 9M reached €20.6 million (+149%), with net profit up 185% to €12.9 million.

• Cash and cash equivalents increased to €51.9 million, supported by operating cash flow of €17.4 million for 9M.

• Strategic growth levers, including internationalization and new platforms like Kyano, are driving future opportunities.

Financial highlights

• Q3 2024 revenue: €66.8 million (+24% YoY); EBIT: €8.2 million (+70% YoY); net income: €5.0 million (+71% YoY).

• 9M 2024 revenue: €182.8 million (+22% YoY); EBIT: €20.6 million (+149% YoY); net income: €12.9 million (+185% YoY).

• Gross profit margin improved to 90.1% (9M), EBITDA margin to 15.9%, and EBIT margin to 11.3%.

• Order backlog at €206.8 million (+43% YoY); order entry for 9M: €209.5 million (+24% YoY).

• Equity ratio improved to 44.0% as of September 30, 2024.

Outlook and guidance

• 2024 revenue guidance raised to €240–250 million (previously €225–240 million); EBIT expected at €21–25 million (previously €16–20 million).

• Margin expected to improve further in 2025, despite positive one-offs in 2024.

• Book-to-bill ratio remains above 1, indicating sustained demand.

• Continued gradual increase in software share of projects, targeting 70%-80% software in the future.