Yahoo Finance

ESPOO, Finland, February 26, 2025--(BUSINESS WIRE)--Tecnotree, a global digital platform and services leader for AI, 5G, and cloud-native technologies, today announced its financial results for the fourth quarter and full year of 2024. 2024 was a pivotal year for Tecnotree despite macro economic challenges, the company delivered 3 consecutive quarters of positive free cash flow achieving and strong ARR growth by 8% YoY from 2023. Further the company delivered on the guidance previously announced achieving a revenue increase of 4% YoY in constant currency, an increase of EBIT of 9% YoY in constant currency and an increase in Free Cash Flow by 7.9 Million Euro in 2024 from the previous period. In 2024, the company’s strategic cost optimization achieved higher savings than previously committed. Tecnotree had taken precautionary measures and made adequate provisions to exit markets which are characterised with geo-political risks, areas of conflict or regions with high risks of sanctions. Further, Tecnotree achieved a breakthrough Tier 1 telco deal in the United States, in collaboration with a leading Systems Integrator (SI) as previously announced, validating our investment in TM Forum Standards and our ability to secure recurring revenue streams in Dollar denominated enterprise markets, paving the way for sustainable growth in the future.

Q4 Results

• Net sales of EUR 17.6 million (22.2) -20.7% Year on Year, In constant currency,
  -16.5% Year on Year.

• Operating profit of EUR 10.9 million (7.9) +38.1% Year on Year.

• Operating margin of 61.7% (35.4%).

• Foreign exchange losses reduced EUR 0.3 million (6.0).

• Net income for the quarter was EUR 0.5 million (2.4) -79% Year on Year.

• Adjusted net income for quarter EUR 4.9 million (2.4) +104% Year on Year.

• Gross cash inflow from operating activities EUR 8.4 million (9.9).

• Positive free cash flow of EUR 0.4 million (-0.6), the third quarter in a row.

• Earnings per share EUR 0.03 (0.01*).

• Order book at the end of the period EUR 79.6 million (80.2).

Full year Results

• Net sales of EUR 71.6 million (78.4) –8.6% Year on Year, in constant currency +4.0% Year on Year, in line with guidance.

• Operating profit EUR 23.8 million (23.8) flat Year on Year, however operating profit margin expanded to 33.2% (30.4%). Operating profit in constant currency EUR 26.0 million, +9.0 % Year on Year in line with guidance.

• Foreign exchange losses reduced to EUR 2.5 million (9.7).

• Net Income for the period EUR 8.3 million (11.2) -25.8% Year on Year due to one-time items pertaining to EUR 7.3 million.

• Adjusted net income was EUR 15.6 million (11.2) +39.3% Year on Year.

• Gross cash inflow from operating activities EUR 21.3 million (17.4).

• Free cash flow stands at EUR -1.8 million ( -9.7).

• Free cash flow for H2 stands at EUR 2.2 million (-3.9) in line with guidance.

• Earnings per share were EUR 0.5 (0.04*).