Sweden · Delayed Price · Currency is SEK Vitec Software Group AB Earnings Call Transcripts
Fiscal Year 2026
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Q3 sales and EBITA each grew 15%, while Cash EBIT rose 13%; YTD sales were up 13%. Transaction revenue remained strong, and three recent acquisitions grew above the group average.
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Sales grew 15% year-over-year in Q2, with strong cash EBIT and margin improvement. Transactional and subscription revenues both increased, driven by activity in real estate and healthcare sectors. AI innovation and disciplined M&A remain key strategic focuses.
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Sales grew 9% year-over-year in Q1 2026, with margin and profit improvements outpacing revenue growth. Two acquisitions boosted growth, AI adoption accelerated efficiency, and cash flow remained robust. Management expects continued gradual margin expansion and stable productivity gains.
Fiscal Year 2025
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Net sales grew 6% in Q4 and 9% for the year, driven by strong subscription revenue and recent acquisitions. Cash flow was robust, with 85% cash conversion to EBIT, while margin improvement remains a focus. Recurring revenue growth is expected to moderate slightly in 2026.
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Q3 saw 6% net sales growth and 10% cash EBIT growth, with recurring revenue at 90%. Enova's revenue declined due to energy market volatility, but overall cash flow and operational metrics remain strong. M&A activity continues, with ample financial headroom for future deals.
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Q2 saw 4% sales growth and strong recurring revenue, but margins declined due to Enova's lower transaction-based results. M&A activity is delayed but expected to pick up, and AI is driving efficiency gains. Stable performance is expected for the rest of the year.
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Net sales grew 23% to SEK 880 million, with recurring revenue up 28% and strong cash flow. Margins declined due to lower service and license sales, while transaction-based revenues rose, mainly from BidTheatre and Enova. Organic growth is expected to slow as inflation-driven price increases moderate.
Fiscal Year 2024
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Q4 sales grew 25% year-over-year, with recurring revenue at 87% and strong cash flow. Seven acquisitions in 2024, including three in Q4, boosted margins and expanded the geographic footprint. Dividend increased for the 23rd consecutive year.
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Q3 saw 15% sales growth and 17% recurring revenue growth, with EBITDA margin down to 31% due to revenue mix and seasonality. Two acquisitions expanded the group to 42 business units in 12 countries, and cash flow remained strong. Positive market signals suggest investment may pick up in 2025.
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Q2 net sales rose 22% to SEK 880 million, with recurring revenue up 27% and strong growth from Enova's transaction-based energy services. EBIT margin was 30%, slightly down due to revenue mix, while organic subscription revenue grew 10% year-over-year.