Columbus: Maintains 2024 guidance after 8% revenue growth (6% organic growth) and improved EBITDA margin in Q3 2024
This morning, Columbus reported its Q3 2024 results, maintaining its 2024 guidance. In Q3 2024, revenue growth was 8% (6% organic growth), driven by its Dynamics (8% YoY) business area and especially also high growth in Data & AI (23% YoY) and CXE (23% YoY). In Q3 2024, the EBITDA margin improved to 7.9% (from 6.0% in Q3 2023). Efficiency was 60% in Q3 2024, the same level as Q3 2023.
In the largest business line, Dynamics, Columbus continues to see a strong win rate. However, it is also stated in today's report that Columbus is starting to experience increased postponements and changing decision patterns from its customers on larger projects. This is in line with comments from other IT service companies, yet Columbus has been somewhat more protected by servicing business-critical Cloud ERP business lines such as Dynamics.
Geographically, the highest growth was from the UK (35% YoY) and Denmark (22% YoY), while Sweden (-11% YoY) and the US (-9% YoY) were more challenged in the quarter.
In Q3 2024, Columbus decreased its number of average FTEs to 1,573 (from an average of 1,588 in Q3 2023), primarily driven by the reduction of its workforce in the Digital Commerce business area.
Looking year-to-date (first 9 months of 2024), revenue growth is 10% (9% organic growth), and the EBITDA margin is 9.2% (6.9% for the first 9 months of 2023), positively affected by the M3CS legal case. Efficiency year-to-date is 62%, slightly below last year’s efficiency YTD of 63%. Cash flow from operating activities YTD has almost doubled to DKK 95.9m (from DKK 48.1m YTD 2023).
With maintained expectations for 2024, Columbus’ revenue guidance is still organic growth in the range of 8-10% and an EBITDA margin in the range of 9-10% range.
Columbus’ CEO & President Søren Krogh Knudsen and Group CFO Brian Iversen will present the results in an online live event on Thursday, 7 November 2024 at 15:00. The management presentation will be followed by a Q&A session. Sign up and ask your questions here: https://www.inderes.dk/videos/columbus-presentation-of-q3-2024-interim-report
Disclaimer: HC Andersen Capital receives payment from Columbus for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn, 5 November 2024, 11:43 (updated 11:48).
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Columbus
Columbus is a global IT services and consulting company, specializing in digital transformation with a focus on the manufacturing, retail & distribution, food & beverage, and life science industries. Headquartered in Denmark and with offices and partners across regions, Columbus advises, implements, and manages IT solutions within areas such as Cloud ERP, Digital Commerce, Data & AI, Customer Experience & Engagement, and Security.
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