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• Revenue Growth: 4% increase in total revenues for Q4.

• Recurring Revenue: Up 6% year over year, with an all-time high of NOK 331 million entering 2025.

• Own Software Revenue Growth: 11% increase in recurring revenue.

• EBITDA Adjusted: NOK 21.3 million, up NOK 11 million from the previous year.

• Net Gross Profit: Increased by 5% to NOK 95 million.

• Net Loss: NOK 4.5 million, consisting entirely of non-cash items.

• Cash Flow from Operations: Positive NOK 26 million in Q4.

• Device Revenue Growth: 3% increase, marking the second consecutive quarter of growth.

• Poland Revenue Growth: 57% increase, primarily from upselling own software.

• Equity Ratio: 49% at year-end, up from 45% the previous year.

• Net Interest-Bearing Debt: NOK 109 million at the end of 2024.

• CapEx: NOK 9.5 million in Q4, higher than usual due to project costs and investments.

• Warning! GuruFocus has detected 4 Warning Signs with OSL:TECH.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Techstep ASA (OSL:TECH) reported a significant improvement in profitability, with EBITDA adjusted doubling in 12 months and increasing tenfold over two years.

• Recurring revenue increased by 6% year over year, reaching an all-time high, with own software showing double-digit growth of 11%.

• The company generated a positive cash flow from operations of NOK26 million in the last quarter.

• Techstep ASA (OSL:TECH) successfully expanded its service delivery, with several new signings and renewed contracts, including a large contract with ISS and SL in Sweden.

• The company entered a strategic partnership with a leading IT vendor, marking its entry into the Ireland and UK markets, which is expected to enhance operational efficiency and customer experiences.

Negative Points

• Techstep ASA (OSL:TECH) faced a net loss of NOK4.5 million in the period, primarily due to non-cash items such as amortization of intangible assets.

• The company experienced a dip in transactional revenues from consulting and aftermarket services, resulting in a 2% reduction in advisory and services revenues year over year.

• There is uncertainty and difficulty in predicting the ramp-up time for new partnership agreements, which could impact future revenue growth.

• The company is undergoing a comprehensive restructuring, which involves significant changes in strategy, commercial focus, and internal processes, potentially leading to short-term disruptions.

• Techstep ASA (OSL:TECH) faces high competition and pressure on margins, particularly in the Swedish market, which began the year with challenges.