Netcompany Delivers Strong Annual Results
Company announcement No. 06/2025
January 28, 2025
Continued Growth and Enhancement of Margins in a Tough Market
2024 Summary Insights
- Throughout 2024, Netcompany achieved a revenue growth of 7.6% (constant 7.4%), reaching DKK 6,540.6 million which aligns with expectations.
- Adjusted EBITDA surged to DKK 1,097.9 million, a considerable increase from DKK 901.2 million in 2023, resulting in a margin of 16.8% for 2024.
- The average workforce grew to 8,007 full-time equivalents (FTEs).
- Free cash flow rose to DKK 821.1 million from DKK 552.1 million in the previous year.
- Cash conversion improved, soaring to 147.1%, up from 135.1% in 2023.
- Debt leverage remained stable at 1.2 times.
- Looking ahead, Netcompany anticipates a revenue growth of 5% to 10% in constant currencies for 2025, with an adjusted EBITDA margin of 16% to 19%.
Highlighting Q4 Performance
- Total revenue in Q4 increased by 6% to DKK 1,678.2 million in reported currencies, and grew by 5.7% in constant currencies.
- Adjusted EBITDA for Q4 saw a 12.8% uplift to DKK 275.3 million, with an adjusted EBITDA margin of 16.4% compared to 15.4% from Q4 2023.
- The workforce expanded by 484 FTEs, totaling 8,249 at the end of the quarter.
- Free cash flow for the quarter stood at DKK 532.4 million.
- Tax-normalized cash conversion ratio reached an impressive 407.8%.
“Experiencing a revenue growth of 7.6% (constant 7.4%) and an adjusted EBITDA margin of 16.8% (constant 16.9%) in 2024 amidst significant macroeconomic uncertainty is a substantial achievement for us.
I'm genuinely pleased to witness the favorable outcomes of our substantial investments in operations, resulting in over 53% improvement in earnings compared to the previous year. The extensive efforts directed towards business development in the final quarter reassure me of Netcompany's capacity for enduring growth and margin enhancement in the future.
Over the course of the year, we successfully onboarded more than 1,700 new members to our team. At the conclusion of 2024, our workforce exceeded 8,250 remarkable individuals. Together, alongside our clients, we are setting the stage for ongoing success for everyone involved.
Despite the ongoing uncertainties at both macro and geopolitical levels, we expect growth between 5% and 10%, alongside an adjusted EBITDA margin between 16% and 19% for 2025. We continue to aim for a mid-term target of a 20% adjusted EBITDA margin while extending the timeline for achieving DKK 8.5 billion in revenue to 2027. Our commitment to redistributing at least DKK 2 billion to shareholders by 2026 remains strong, although we will not pursue a new share buyback program at this time due to strategic considerations.
These are exciting times ahead, and I am eager to continue growing Netcompany successfully with all stakeholders in 2025.”
André Rogaczewski,
CEO and Co-founder of Netcompany
Financial Overview and Future Directions
For comprehensive details regarding financial performance, please refer to the attached documents, including the Company announcement for Q4 2024 and the Annual Report 2024 (including iXBRL).
Conference Call Scheduled
In conjunction with the release of Q4 results, Netcompany will hold a conference call on January 28, 2025, at 11:00 CET.
This conference call will be conducted in English and is accessible in real-time via the company’s website: www.netcompany.com
Important Dial-In Details for Investors and Analysts:
DK: +45 7876 8490
UK: +44 203 769 6819
US: +1 646 787 0157
PIN: 598046
For Additional Information
For any further inquiries, please contact:
Netcompany Group A/S
Thomas Johansen, CFO, +45 51 19 32 24
Frederikke Linde, Head of IR, +45 60 62 60 87
Frequently Asked Questions
What growth did Netcompany achieve in 2024?
Netcompany achieved a revenue growth of 7.6% in 2024.
What is the adjusted EBITDA margin for 2024?
The adjusted EBITDA margin for 2024 was 16.8%.
How many new employees were added in 2024?
Netcompany welcomed over 1,700 new employees in 2024.
What are the revenue expectations for 2025?
The company expects revenue growth between 5% and 10% in 2025.
Who is the CEO of Netcompany?
André Rogaczewski is the CEO and co-founder of Netcompany.