In This Article:
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Revenue: EUR646 million, up 10% in the first nine months of 2024.
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Adjusted EBIT Margin: EUR57 million, improved by 10%.
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Order Backlog: Up 26%.
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EBIT Adjusted: EUR57 million, up 6%.
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EBT: Down 3% due to increased amortization and interest effects.
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Revenue Growth by Market: Brazil 13%, Germany 17%, Spain 16%.
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Sector Growth: Banking 14%, Industry and Manufacturing 7%.
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Personnel Expenses: Up 16%.
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Utilization Rate: 91.4% in Q3 2024.
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Employee Count: Up 24% due to acquisitions and hiring in Brazil.
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Net Cash: EUR84 million at the end of Q3 2024.
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Revenue Guidance: Adjusted to EUR865 million for the full year 2024.
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EBIT Adjusted Guidance: EUR77 million for the full year 2024.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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GFT Technologies SE (WBO:GFT) reported a 10% increase in revenues, reaching EUR646 million, with an adjusted EBIT margin improvement of 10% to EUR57 million in the first nine months of 2024.
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The company experienced strong growth in its three largest markets: Brazil (13%), Germany (17%), and Spain (16%).
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GFT Technologies SE successfully completed its largest acquisition in history, expanding its market presence in Colombia and Latin America, and enhancing its core banking, AI, data, and cloud capabilities.
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The company launched GFT AI Impact, a product that accelerates and improves productivity in software development, achieving productivity boosts of 50% to 90% for clients.
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GFT Technologies SE was recognized as a global leader in digital banking services in the 2024 Spark Matrix report and improved its EcoVadis rating, reflecting its commitment to sustainability and ESG practices.
Negative Points
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Despite revenue growth, the company faced challenges with a 3% decline in the insurance sector, although there was a positive recovery in Q3.
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The company experienced a negative impact from foreign exchange rates, particularly in Latin American currencies, affecting profitability.
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GFT Technologies SE had to expand its restructuring programs, incurring nearly EUR7 million in capacity adjustments in 2024.
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The company reported a reduction in revenue expectations for Q4 due to weaker demand and unfavorable currency evolution in South American markets.
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The adjusted EBIT growth of 5% was slower than revenue growth, indicating pressure on prices and operational challenges.
Q & A Highlights
Q: Can you provide more details on the order backlog and its impact on future quarters? A: The order backlog, including the recent deal in Colombia, provides a solid basis for the next quarters. The deal in Colombia is just starting and doesn't significantly impact the numbers yet. The backlog mainly covers the next two quarters, with a significant portion in the upcoming quarter and a high extent in the following one.