In This Article:
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Revenue: Increased from EUR 48.5 million to EUR 62 million, a 64% growth compared to Q2 2023.
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Software Revenue: More than doubled compared to Q4 2022.
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EBIT: Increased by EUR 9 million, with the EBIT margin three times better than in H1 2023.
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Operating Cash Flow: Positive at EUR 4.7 million compared to negative EUR 9 million in H1 2023.
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Order Entry: 108% growth in software and partner business, with a 45% overall order entry increase.
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Order Backlog: Stable with no project losses, minor project remeasurements noted.
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Guidance for Revenue: Forecasted range between EUR 225 million and EUR 240 million.
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Guidance for EBIT: Forecasted range between EUR 16 million and EUR 20 million.
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Headcount: Increased by 55, primarily in the Services segment due to the acquisition of the Trigon Group.
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Equity Ratio: Improved, supported by a new bank loan at favorable interest rates.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SNP Schneider-Neureither & Partner SE reported strong revenue growth, increasing from EUR 48.5 million to EUR 62 million, with a notable 64% increase in software revenue compared to Q2 2023.
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The company successfully resolved a legal dispute with the community of heirs, receiving over 99% shareholder approval for the agreement.
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The partner business accounted for 54% of total order entry in H1, demonstrating strong strategic growth and collaboration with major IT players.
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SNP raised its revenue guidance to a range of EUR 225 million to EUR 240 million and increased its EBIT forecast to between EUR 16 million and EUR 20 million.
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The company achieved a significant improvement in EBIT, with a EUR 9 million increase and a threefold improvement in EBIT margin compared to H1 2023.
Negative Points
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Despite strong topline growth, the updated guidance implies a lower H2 growth rate of around 8% and an EBIT margin of roughly 5%, which may be seen as conservative.
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Personnel costs increased due to higher headcount and salary adjustments, impacting overall expenses.
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The company experienced increased travel and marketing expenses, partly due to efforts to expand into new markets like Brazil, Nordics, and the Middle East.
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Payments from lease liabilities increased significantly, influenced by the acquisition of the Trigon Group.
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The operating cash flow in Q2 was negative, primarily due to bonus and variable payments for the successful year 2023, reducing the strong Q1 cash flow.
Q & A Highlights
Q: Could you quantify the impact of large program licenses in Q2? Are these the two megadeals mentioned in the presentation? A: Yes, we have two megadeals in Q2 totaling EUR 17 million, with one deal having a high software share of 65%. These are specific licenses related to transformation programs, not all-you-can-eat licenses. - Jens Amail, CEO