In This Article:
Siili successfully launched the implementation of its new strategy in challenging market conditions
Siili Solutions Plc Stock Exchange Release 22 October 2024 at 9:45 am EEST
Key figures
| EUR million | Q3/2024 | Q3/2023 | Q1-Q3/2024 | Q1-Q3/2023 |
| Revenue | 24.1 | 27.0 | 83.3 | 92.3 |
| Revenue growth. EUR million | -2.9 | 0.1 | -9.0 | 6.5 |
| Revenue growth. % | -10.8% | 0.5% | -9.8% | 7.6% |
| Organic revenue growth. EUR million | -2.9 | -1.2 | -9.0 | 2.3 |
| Organic revenue growth. % | -10.8% | -4.1% | -9.8% | 2.6% |
| Adjusted EBITA | 0.7 | 1.3 | 4.0 | 6.3 |
| Adjusted EBITA. % of revenue | 2.9% | 4.7% | 4.8% | 6.8% |
| EBITA | 0.7 | 1.3 | 3.4 | 6.3 |
| EBITA. % of revenue | 2.9% | 4.7% | 4.1% | 6.8% |
| Average number of employees during the period | 956 | 1,057 | 976 | 1,049 |
| Number of employees at the end of the period | 945 | 1,053 | 945 | 1,053 |
| Number of full-time employees (FTE) at the end of the period | 909 | 1,023 | 909 | 1,023 |
| Number of full-time subcontractors (FTE) at the end of the period | 148 | 172 | 148 | 172 |
Key events in July-September:
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On 13 August 2024, Siili published its new strategy placing AI and data at its core.
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On 17 September 2024 Siili published a profit warning and lowered its financial guidance for 2024 revenue and adjusted EBITA.
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Activity in sales created good ground for strategy implementation.
Outlook for 2024:
The updated financial guidance of revenue for 2024 is expected to be EUR 106–116 million and adjusted EBITA EUR 4.5–6.5 million.
The previous guidance for the current year's revenue was EUR 120-140 million and adjusted EBITA EUR 7.5-10.5 million.
CEO Tomi Pienimäki:
In July–September, Siili continued to lay a solid foundation for the implementation of its new strategy in spite of challenging market conditions.
Revenue for the third quarter declined 11% year-on-year, to stand at approximately EUR 24 million. Adjusted EBITA for the quarter was EUR 0.7 million and about 3% of revenue.
The overall state of the IT service market has remained challenging, and recovery of the markets is taking longer than expected. Decision-making by customers on starting new projects continues to be slow, despite increased activity among customers. Against this backdrop, in September, we updated our guidance on revenue and adjusted EBITA for 2024.
As an example of positive developments in sales, I would like to highlight a significant new customer in the German automotive industry, starting out with a contract of approximately EUR 8 million for the next five years. Siili was also selected by several industry-leading AI users as a partner in data and AI projects. Growth in this area is one of our strategic priorities. For the time being, AI projects tend to be small, but they represent important openings in building long-term partnerships. We have continued to strengthen the data and AI competencies of the Siili team, both by training the personnel and by new recruitments.