Trifork Group Revises Financial Guidance for 2024
Trifork Group AGCompany announcement no. 29/2024
Schindellegi, Switzerland
The Trifork Group has updated its financial outlook for 2024. After assessing its performance in the second quarter and reviewing revised forecasts from its subsidiaries, the company has made necessary adjustments to its annual guidance.
Updated Financial Expectations
With the latest insights in hand, Trifork anticipates the following financial results for 2024:- Revenue is now expected to fall between EURm 215-220, down from the earlier estimate of EURm 220-230, which reflects a growth rate of 3.4-5.8%. Inorganic revenue is still projected at EURm 5.4.
- Adjusted EBITDA for the Trifork Segment is anticipated to range from EURm 31-34, a decrease from the previous forecast of EURm 34-38.
- EBIT for the Trifork Group is projected to be between EURm 14-17, which is lower than the earlier range of EURm 17-21.
Segment Performance Overview
In the Inspire segment, revenue for Q2 rose by 8.6% to EURm 2.4, demonstrating consistent performance. However, the adjusted EBITDA for this segment was reported at EURm 0.0. On the other hand, the Build segment is still grappling with challenging market conditions, achieving a slight revenue increase of 0.1% to EURm 37.2 and an adjusted EBITDA margin of 13.0%. In the Run segment, Q2 revenue dropped by 19.2% to EURm 12.7 compared to the same quarter last year. This decline was largely due to a loss of EURm 3.2 in revenue from non-core third-party licenses and hardware sales. Excluding this loss, the core business growth rate for Run, which includes Licenses & Support, Hosting, and Security, was a modest 1.5%, with an adjusted EBITDA margin of 19.2%.CEO's Remarks
Comment from CEO Jørn Larsen:“The second quarter and the first half of 2024 have proven to be more challenging than we initially expected. We have yet to secure new engagements in the private sector that would compensate for revenue losses from prior engagements that were either postponed or canceled. Overall, revenue for the first half of 2024 has remained on par with 2023 levels. However, I find encouragement in our recent achievements within the public sector in Denmark, where we have been winning and fulfilling new contracts that help offset reductions in scope from other projects. Although our profitability is still below our targets, we are making progress with our strategic initiatives, which include boosting sales of our proprietary software products, refining our conference operations, and reorganizing our Cyber Protection teams. While we are eager to expand our business development efforts to diversify our sales pipeline, we are also focusing on identifying efficiencies to manage costs. Additionally, we will continue to pursue mergers and acquisitions, even amid the current sluggish market conditions. I remain optimistic about the medium- and long-term outlook for Trifork Group, even though 2024 has not met our expectations.”
Upcoming Financial Reporting
Trifork is set to release its detailed Q2 and half-year report soon. The announcement will occur at 07:00 CEST, followed by a results presentation and Q&A session at 11:00 CEST, featuring CEO Jørn Larsen and CFO Kristian Wulf-Andersen. A recording of the presentation will be available on the company's investor website.Contact Information
For any inquiries, please reach out to the following contacts: InvestorsFrederik Svanholm, Group Investment Director & Head of Investor Relations
frsv@trifork.com, +41 79 357 7317
Media
Peter Rørsgaard, CCO Fintech & Head of Press Relations
pro@trifork.com, +45 2042 2494
About Trifork Group
Trifork is an innovative technology partner serving both enterprise and public sector clients, employing 1,273 people across 74 business units in 15 countries. The group operates in six key areas: Digital Health, FinTech, Smart Building, Smart Enterprise, Cloud Operations, and Cyber Protection. Trifork invests in and develops technology companies through its R&D division, Trifork Labs. Additionally, the group manages well-known software conference brands such as GOTO and YOW!, along with a large tech community that boasts over a million online subscribers and 72 million video views. Trifork Group AG is publicly traded on Nasdaq Copenhagen. For more information, visit trifork.com.Frequently Asked Questions
1. What is Trifork Group's new revenue guidance for 2024?
Trifork Group now expects revenue to be in the range of EURm 215-220 for 2024.
2. How did the different segments of Trifork perform in Q2?
In Q2, the Inspire segment had an 8.6% revenue increase, Build had a slight growth of 0.1%, and Run saw a 19.2% decline in revenue.
3. What factors contributed to the decline in the Run segment?
The decline in the Run segment was primarily due to a loss of EURm 3.2 from non-core third-party licenses and hardware sales.
4. What strategic initiatives is Trifork focusing on amid challenges?
Trifork is concentrating on increasing proprietary software sales, optimizing conference operations, and reorganizing teams in Cyber Protection.
5. Who can be contacted for more information about Trifork Group?
For investor inquiries, contact Frederik Svanholm at frsv@trifork.com. For media inquiries, contact Peter Rørsgaard at pro@trifork.com.
