In This Article:
-
Net Sales: SEK691 million in Q4 2024; SEK2.6 billion for the full year 2024.
-
Organic Growth: 4% in Q4 2024; 5% for the full year 2024.
-
Adjusted EBITA Margin: 24% in Q4 2024, an improvement of nearly 5 percentage points.
-
Leverage: 3.0 times EBITA by the end of December 2024.
-
Annual Run-Rate Synergies: EUR14 million achieved by the end of 2024.
-
Adjusted Free Cash Flow: SEK210 million in Q4 2024, an improvement of SEK61 million compared to Q4 last year.
-
Region North Online Sales: Increased by 20% in Q4 2024, accounting for 92% of net sales.
-
Region South Online Sales: Increased by 5% in Q4 2024, accounting for approximately 76% of net sales.
-
Subscription-Based Sales: Represented 86% of sales in Q4 2024.
-
Items Affecting Comparability: SEK63 million in Q4 2024, related to integration and acceleration initiatives.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Karnov Group AB (FRA:3UA) achieved strong results in Q4 2024 with significant margin improvements due to synergies.
-
Net sales grew to SEK691 million, with organic growth driven by strong online sales and new AI solutions.
-
The adjusted EBITA margin improved to 24%, an increase of almost 5 percentage points from the previous year.
-
AI solutions have been successfully adopted by major law firms and public sector entities in Denmark and Sweden.
-
The company achieved its annual run-rate synergy target of EUR7.5 million for 2024, with synergies amounting to EUR8 million by year-end.
Negative Points
-
Currency effects negatively impacted net sales by 0.3% in 2024.
-
Revenues from AI sales were limited in Q4 as subscription revenues are recognized over the contract period.
-
In Region South, subscription sales decreased by 2% despite a 7% growth in online subscription sales.
-
Items affecting comparability amounted to SEK63 million during Q4, related to integration and acceleration initiatives.
-
The French and Spanish operations showed modest growth, with ongoing integration efforts needed to achieve profitable growth.
Q & A Highlights
Q: What percentage of the annual contract value is now on the AI version of your products, and what are your expectations for AI product uptake in 2025 and 2026? A: While we don't disclose specific product numbers for competitive reasons, we have seen significant enthusiasm from the legal industry, including major law firms in Sweden and Denmark adopting our AI solutions. We have observed a price uplift of at least 30% for AI products, which remains consistent.