Q2 2024 Atea ASA Earnings Call Transcript
Key Points
- Atea ASA (ATEAY) reported strong cash flow from operations, with an inflow of NOK665 million in Q2 2024, significantly higher than the previous year.
- The company has a strong balance sheet with a net debt-to-EBITDA ratio of effectively 0, indicating financial stability.
- Software revenue grew by 14.8% year-over-year, driven by strong growth in cloud subscriptions.
- Gross margins increased from 29.9% to 31.5% due to a higher proportion of software in the revenue mix.
- Atea ASA (ATEAY) remains on a solid long-term growth trajectory, with a compound annual growth rate of 5.1% in revenue and 9.3% in gross profit over the past two years.
- EBIT for Q2 2024 was NOK243 million, below expectations and down from NOK291 million last year.
- Net revenue declined by 5.5% year-over-year, primarily due to a decrease in networking hardware shipments.
- Revenue in Sweden fell by 11.1%, with a significant decline in hardware revenue due to lower networking equipment shipments.
- Services revenue fell by 1.2% year-over-year, attributed to lower demand for technical consultants.
- The company faced challenging year-over-year comparables, impacting revenue performance negatively.
Welcome to the Q2 presentation of the Atea numbers here in downtown and sunny, I should say, Oslo. The world is becoming more and more influenced by technology every day, but it's also becoming more complex and unpredictable as we can all see around us and of course, so also for Atea.
The numbers. Gross sales came in about where we expected it at NOK14.7 billion. EBIT came in at NOK243 million, somewhat below what we expected. The cash flow was really strong in this quarter, as Robert alluded to in the Q1 presentation, and came in at NOK665 million, some NOK350 million higher than same quarter last year.
Cash is king, as we can all see that interest rates will be kept higher for longer and we are competing against companies that doesn't have as strong a balance sheet as we do. But as always, I'll leave it to Robert to give you all the details.
Thank you, Steinar. As Steinar mentioned, Atea reported gross sales of NOK14.7 billion last year in
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