A software company serving the construction industry Admicom will report its results for the third quarter of the Helsinki Stock Exchange in the morning.
Admicom’s turnover increased to 8.7 million euros in July–September from 8.5 million euros in the comparison period a year ago. The consensus of four analysts compiled by Factset had expected a turnover of 8.9 million euros.
Adjusted EBITDA fell to 3.6 million euros from 3.8 million euros in the comparison period, while the expectation was 3.5 million euros. There were no adjustments affecting EBITDA in the third quarter.
Operating profit fell to 2.6 million euros from 3.4 million euros in the comparison period in the third quarter. Analysts expect the company’s operating profit to have been 2.8 million euros.
Admicom’s earnings per share fell to 0.38 euros from 0.45 euros, while the forecast was 0.43 euros.
Continuous annual invoicing grew by 4.2 percent to 34.0 million euros.
“In the third quarter of 2024, we saw the first signs of a pick-up in the construction industry”, CEO Petri Kairinen commented in the interim report.
According to Kairinen, new sales in the smaller customer segment have been particularly strong during the quarter.
“However, there has been a move forward in the larger deals, and the defaults among our customers were also higher than in the previous quarter, which restrained the overall growth of ARR to 4.2 percent.”
The decrease in the 12-month moving average of equalization billing reduced ARR growth by 2.3 percentage points.
Instructions unchanged
Admicom repeated its instructions.
The company estimates that continuous annual billing will increase this year by 5–10 percent from last year, total turnover will increase from last year, and adjusted EBITDA will be 32–37 percent of turnover.
Continuous annual billing in 2023 was 32.5 million euros.
“In summary, the third quarter was a period of stable development for Admicom, which included good performance in a smaller customer segment, important changes to pricing and product strategy, and the first turn to a more positive market atmosphere in the construction industry. Announcing Admicom’s artificial intelligence vision is an exciting milestone for our product development,” says Kairinen.
“As we move into the last quarter of 2024, we estimate that we will achieve our financial guidance for the whole year. We continue to focus on increasing ARR by means of new sales, additional and cross-selling, and reducing churn. We are convinced that these initiatives, combined with investments in international expansion, will create the basis for accelerated growth in 2025.”
The company is still looking for possible acquisitions that would expand the presence on the European market or the product range.
Source: www.arvopaperi.fi
