Q2 2024 Vitec Software Group AB (publ) Earnings Call Transcript
Key Points
- Net sales increased by 22% in Q2 2024, reaching SEK880 million.
- Recurring revenue grew by 27%, highlighting the company's strong focus on stable income streams.
- EBITA margin increased by 17%, maintaining a healthy level of 30%.
- Organic growth in subscription-based revenues was near 10%, demonstrating robust internal growth.
- Cash flow for the first half of the year was strong, up 37% to SEK783 million.
- EBITA margin for the quarter was 1 percentage point lower than the previous year, partly due to the mix of income.
- Transaction-based revenues, while growing, have a lower margin compared to subscription-based revenues.
- New sales remain challenging, although upsell and additional sales to existing customers are strong.
- The company's margin in Enova was lower this quarter due to higher transaction revenues.
- Salary inflation and price increases are both around 4%, potentially impacting future profitability.
Welcome to Vitec Software Group Q2 2024 report presentation. (Operator Instructions) Now, I will hand the conference over to CEO, Olle Backman; and IR, Patrik Fransson. Please go ahead.
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Thank you. A warm welcome to everyone on this call, where we will cover the report that we reported early this morning. I'm Patrik Fransson, Head of Investor Relations; and with me is our CEO, Olle Backman. As always, we will start with a brief overview of Vitec as a whole, and then followed by an update of the Q2 and H1. And after that, we will open up for questions. So with that, I hand over to you, Olle.
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Okay. Thanks, Patrik, and very welcome to the presentation. Sorry for the delay in the beginning there. But as Patrik said, we always start with a brief overview of the group and always with the customer perspective here. So we have
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