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Jun 30, 2024
Spire Q2 2024 Earnings Report
Spir Group reported improved financial performance in Q2 2024, with increased revenue, gross profit, and net income, driven by organic growth and positive impacts from interest rate swaps.
Key Takeaways
Spir Group delivered a strong performance in Q2 2024, with revenue increasing by 6.3% organically to MNOK 307.6. Adjusted EBITDA grew by 5.6% to MNOK 56.4, maintaining an 18% margin. Net income significantly improved to MNOK 9.4, up from MNOK 2.5 in Q2 2023, benefiting from increased operational profit and gains on interest rate swaps. The company also acquired a 15% stake in Prosper Ai AS.
Revenue increased by 6.3% organically in Q2 2024, reaching MNOK 307.6.
Adjusted EBITDA grew by 5.6% to MNOK 56.4, with an 18% margin.
Net income improved significantly to MNOK 9.4, driven by operational profit and interest rate swap gains.
Annual recurring revenue (ARR) increased by 6.0% to MNOK 406 at the end of Q2 2024.
Spire
Spire
Forward Guidance
Spir Group anticipates continued growth in subscription-based revenues and expects the real estate market to improve, supporting transaction-based revenues. Investments in product development are expected to improve margins and cash flow, with a focus on cost control and efficiency improvements through AI solutions.
Positive Outlook
- Subscription-based revenues are expected to continue steady growth with low churn.
- The real estate market in Norway and Sweden shows signs of picking up, which should positively impact transaction-based revenues.
- New housing development, though at an all-time low in H1 2024, has flattened out and is showing signs of improvement, expected to continue in H2 2024.
- Consulting revenues are expected to continue to grow at a steady pace, driven by demand for IT-solutions and expert consulting.
- Investments in product development are expected to materialize in improved margins and cash flow yield over time.
Challenges Ahead
- Operating costs for H1 2024 were higher due to general wage increases and inflation.
- Overhead costs in Metria, previously allocated to divested business, have been retained.
- Some new positions at the group-level contributed to higher costs.
- The challenging real estate market in Sweden has negatively impacted transaction-based revenue.
- The decrease in other revenue is mainly due to invoicing of services to new owner of divested business in a transition period in 2023, and grants from Forskningsrådet to Boligmappa in 2023.