Correction to stock exchange release: Siili Solutions Plc: Business review, 1 January – 31 March 2024
Siili Solutions Plc Stock exchange release 24 April 2024 at 16:55
This is a correction to the stock exchange release published by Siili Solutions Plc on 24 April 2024 at 9:45 am by which the company published its business review for the period 1 January – 31 March 2024. In section “Key events for January-March” it was stated that “75% of Siili employees have completed a GenAI certificate”. The correct information is that “51% of Siili employees in Finland have completed a GenAI certificate”.
In addition, in the CEO review it was stated that “By the end of March, 75% of Siili’s employees in Finland had achieved the first-level certification.” The completion percentage was incorrect and the correct information is that “By the end of March, 51% of Siili’s employees in Finland had achieved the first-level certification.”
The corrected release is stated below as a whole and the revised report is attached to this release.
Siili’s result decreased as expected, good development within AI
Key figures
EUR million
Q1/2024
Q1/2023
Revenue
29.8
33.6
Revenue growth, EUR million
-3.8
4.3
Revenue growth, %
-11.3%
14.5%
Organic revenue growth, EUR million
-3.8
2.7
Organic revenue growth, %
-11.3%
8.6%
Adjusted EBITA1
1.6
3.3
Adjusted EBITA, % of revenue
5.3%
10.0%
EBITA
1.4
3.3
EBITA, % of revenue
4.6%
10.0%
Average number of employees during the period
990
1,050
Number of employees at the end of the period
973
1,054
Number of full-time employees (FTE) at the end of the period
950
1,024
Number of full-time subcontractors (FTE) at the end of the period2
137
187
1EBITA adjustments EUR 0.2 million consisted of personnel expenses related to restructuring of operations.
2The figure for the comparison period has been retroactively corrected.
Key events in January-March:
Siili streamlined its organisational structure and COO Kari Pirttikangas left their position in Siili and Siili management team.
Siili Solutions earned the internationally recognized ISO 27001 information security certification.
Good development within the field of AI: 51% of Siili employees in Finland have completed a GenAI certificate and an AI-assisted Viki and Köpi radio talk show developed by Siili for Finnish Public Service Media Company was awarded in Grand One competition.
Outlook for 2024:
Revenue for 2024 is estimated to be EUR 120–140 million and adjusted EBITA EUR 7.5–10.5 million.
CEO Tomi Pienimäki:
The first quarter of this year was challenging as expected for Siili due to the tightening of the market conditions last year. The Group's revenue in January–March amounted to just under EUR 30 million, declining from a strong comparison period by a good 10%. The decline in revenue was also accentuated by a slightly lower number of working days compared to last year. Adjusted EBITA for the reporting period was EUR 1.6 million, or 5.3% of revenue. Due to the reduced revenue, profitability also came in weaker than in the comparison period, as expected.
As the market conditions and price competition remained tight, we also continued our actions to improve the efficiency of operations. Recruitment has been moderate, responding to customer demand. In addition, we streamlined the reporting structure of the Finnish unit. This is a step on our way towards even stronger business units focusing on the customer-facing business. In the prevailing situation, we zeroed in on strengthening our competitiveness and building competitive advantages.
Experience has shown that, when the market is quieter, the groundwork is laid for success once the market picks up. We believe that the effect of the efficiency-improving measures launched last year, which are still ongoing, will be fully reflected in our competitivemess and profitability when the market situation starts improving.
Despite the challenging market conditions, the first quarter also saw many successes. AI-assisted development offers an abundance of new opportunities for both our clients and employees, Therefore, we started a three-level AI training programme for our consultants in January. By the end of March, 51% of Siili’s employees in Finland had achieved the first-level certification, and the training continues throughout the year.
In addition to our own initiatives, we also got the opportunity to work with our clients on several digital services utilising artificial intelligence. Among other things, building on OpenAI technologies, we developed a menopause coach called Vera for the Dutch company Vi, and our AI-assisted radio show based on the Viki and Köpi talk show was awarded a honorary mention in the Grand One digital media competition. Furthermore, we won several AI tenders in the public sector, including one for the Päijät-Häme wellbeing county in Finland.
The current market sentiment appears contradictory: activity with our clients has increased but simultaneously the general economic situation continues to cause uncertainty. In the long term, we expect the demand for digital development services to stay strong. We will continue to maintain our flexible and efficient way of operation, while strengthening our expertise particularly in terms of artificial intelligence. This allows us to best support both our clients and personnel.
We are living in the midst of a very interesting technological paradigm shift, and I would like to extend my thanks to the Siili employees and our customers for their curious and unprejudiced mindset in the face of new opportunities.
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This is not an interim report under IAS 34. The company complies with the half-yearly reporting requirements of the Securities Markets Act and publishes business reviews for the first three and nine months of the year, which present key information on the company’s financial performance. The financial information presented in this business review is unaudited.
Siili Solutions Plc is a unique combination of a digital agency and a technology powerhouse. We believe in human-centricity in everything we deliver. Siili is the go-to partner for clients seeking growth, efficiency and competitive advantage through digital transformation. Siili has offices in Finland, Germany, Poland, Hungary, Netherlands, United Kingdom, Austria and USA. Siili Solutions Plc shares are listed on Nasdaq Helsinki Ltd. Siili has grown profitably since it was founded in 2005. www.siili.com
