Q3 2024 Proact IT Group AB Earnings Call Transcript
Key Points
- Proact IT Group AB (LTS:0GT3) reported strong organic growth of almost 9% in the quarter.
- The company achieved good cash generation, maintaining a strong financial position with a net cash position of SEK175 million.
- EBITA growth was nearly 9%, even after accounting for a SEK9 million cost related to the company's 30th anniversary celebration.
- The company has a diversified revenue stream with strong system sales, which increased by 17.6% and 20.1% organically.
- Proact IT Group AB (LTS:0GT3) continues to innovate, introducing AI-enabled cloud services and a Cleanroom product for enhanced security.
- The services business experienced a decline of 4.7%, with a 2.3% organic decrease, particularly in Managed Cloud Services and consultancy revenue.
- Annualized recurring revenue (ARR) decreased by 2.4% compared to Q3 2023, with flat organic growth.
- The company faced longer sales cycles for complex deals in Managed Cloud Services, affecting revenue timing.
- Consulting revenues were down, attributed to a tougher market for consultants and lower staffing levels.
- The UK business unit saw flat EBITA despite increased revenues, due to a shift in revenue mix leading to lower gross margins.
All right. Let's start. Welcome to Proact Q3 Report. My name is Jonas Hasselberg. I'm here with our CFO, Noora as well. We'll take you through the presentation here. Before we start, I'll just let everybody know -- I want to let everybody know that we are recording this session, and it will be published on our website after the session. (Event Instructions)
Good. So good morning again, and welcome. Here we go. I'll start with just a couple of introduction slides. Most of you know us quite well. Proact is a tech company, a European-based tech company. We help our customers to secure and manage their business critical data and business critical applications.
We just turned 30 years old, which we're quite proud of. Not all tech companies survive that long. We are based in the countries you can see here on the map. We're divided into four different business units: Nordics & Baltics; Central with Germany and Czechia; West with Netherlands and Belgium; and UK with UK. And we have about 4,000 customers. We employ
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