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Dec 31, 2023

Bowman Q4 2023 Earnings Report

Bowman's Q4 2023 performance reflected growth in gross contract revenue and net service billing, but a net loss was reported.

Key Takeaways

Bowman Consulting Group Ltd. reported a 23% increase in gross contract revenue and a 22% increase in net service billing for Q4 2023. However, the company experienced a net loss of $7.7 million compared to a net income of $0.5 million in the same period last year.

Gross contract revenue increased by 23% to $93.0 million.

Net service billing increased by 22% to $80.5 million.

Organic gross contract revenue growth was 6%.

The company reported a net loss of $7.7 million.

Total Revenue
$93M
Previous year: $75.6M
+23.0%
EPS
$0.31
Previous year: $0.03
+933.3%
Adjusted EBITDA
$11.2M
Previous year: $9.42M
+19.5%
Adjusted EBITDA Margin
14%
Previous year: 14.2%
-1.4%
Gross Backlog
$306M
Gross Profit
$40.9M
Previous year: $39.4M
+3.7%
Cash and Equivalents
$20.7M
Previous year: $13.3M
+55.8%
Free Cash Flow
-$561K
Previous year: -$3M
-81.3%
Total Assets
$403M
Previous year: $256M
+57.5%

Bowman

Bowman

Bowman Revenue by Segment

Forward Guidance

The Company is adjusting its full year 2024 outlook for net service billing to be in the range of $363 to $378 million and Adjusted EBITDA in the range of $59 to $65 million.

Positive Outlook

  • Net service billing2 to be in the range of $363 to $378 million
  • Adjusted EBITDA2 in the range of $59 to $65 million
  • The current outlook for 2024 is based on completed acquisitions as of the date of this release
  • The current outlook does not include contributions from any future acquisitions
  • Management discusses the Company’s acquisition pipeline and its prospective impact during regularly scheduled earnings calls

Challenges Ahead

  • 2024 forecast assumes uneven growth in net service billing from first to third quarter
  • An accommodation for a modest seasonal impact during the fourth quarter
  • It can take acquisitions a couple of months to return to normal net service billing levels due to the unusual demands of immediate post-closing integration
  • When acquisitions are added to guidance, we include a pro-rated amount of announced annualized net service billing run rate that is based on the timing of closing
  • Anticipated integration related revenue disruptions

Revenue & Expenses

Visualization of income flow from segment revenue to net income