Cint

Fourth quarter 2024

• Effective from the first quarter 2024, Cint implemented changes in its financial reporting. Pro forma figures are presented for the purpose of comparability.
• On a pro forma basis net sales decreased by 2.8 percent to EUR 45.4m (46.7 pro forma) and by 4.4 percent on a constant currency basis. Reported net sales last year amounted to EUR 72.3m.
• Gross profit amounted to EUR 40.2m (41.8 pro forma) corresponding to a margin of 88.7 percent (89.6 pro forma). Reported gross profit last year amounted to EUR 46.2m and reported gross margin last year was 63.9 percent.
• EBITA amounted to EUR 12.7m (12.2) with an EBITA margin of 28.0 percent (26.2 pro forma). Reported EBITA margin last year was 16.9 percent.
• EBIT amounted to EUR 1.4m (-411.5*) with an EBIT margin of 3.0 percent (-881.6 pro forma*). Reported EBIT margin last year was -569.1 percent*.
• EPS before dilution amounted to EUR 0.01 (-1.95).
• Adjusted EPS, before dilution amounted to EUR 0.05 (0.03).

January - December 2024

• On a pro forma basis net sales decreased by 0.8 percent to EUR 166.2m (167.6 pro forma) and by 1.2 percent on a constant currency basis. Reported net sales last year amounted to EUR 266.5m.
• Gross profit amounted to EUR 144.5m (147.1 pro forma) corresponding to a margin of 86.9 percent (87.8 pro forma). Reported gross profit last year amounted to EUR 166.2m and reported gross margin last year was 62.3 percent.
• EBITA amounted to EUR 33.0m (28.7) with an EBITA margin of 19.8 percent (17.1 pro forma). Reported EBITA margin last year was 10.8 percent.
• EBIT amounted to EUR -9.1m (-448.7*) with an EBIT margin of -5.5 percent (-267.8 pro forma*). Reported EBIT margin last year was -168.3 percent*.
• EPS, before dilution amounted to EUR -0.06 (-2.10).
• Adjusted EPS, before dilution amounted to EUR 0.10 (0.07).
• The Board of Directors will propose to the AGM 2025 that no dividend shall be paid to shareholders.

*) EBIT 2023 was impacted by a write down of goodwill amounting to EUR 412.2m. the period

Significant events during and after the period
In December 2024, Cint announced cost reductions, including a workforce reduction of approximately 12 percent, projected to decrease annual operating expenses by approximately MEUR 15. In January 2025, Ben Hogg joined Cint as Managing Director (MD) of Cint Exchange and was appointed as a member of the Global Leadership Team (GLT). Kevin Evers, MD of Cint Data Solutions and Measurement, was also appointed as member of the GLT. In January 2025, Cint announced its revised strategy and new financial targets, preliminary fourth quarter and full year 2024 results and the intention to do a rights issue with the aim to raise approximately SEK 600m.

CEO Patrick Comer comments:

Sales and profitability
Our fourth-quarter and full-year 2024 results aligned with the levels reported in our January 27 trading update. Q4 net sales decreased by 2.8 percent to EUR 45.4m (46.7 pro forma), partly driven by substantial drop in demand after the US election. EBITA for the quarter increased to EUR 12.7m (12.2) with an EBITA margin of 28.0 percent (26.2 pro forma) partly due to lower personnel costs and the announced cost savings program in December 2024.

Net cash flow for the quarter amounted to EUR 2.5 (-2.7). A positive cash flow from operating activities was partly offset by higher working capital and investments in new features and functions of the platform to support future growth. Following a seasonally strong Q4, higher accounts receivable drove the increase in working capital, though this was partially balanced by higher accounts payable.

Managing working capital remains a key priority, focusing on reducing accounts receivable.

Consolidation
We made significant progress this year in consolidating our technology platforms to unify resources and enhance the customer experience. Customer migration to the new Cint Exchange is also advancing, with approximately 75% of customers successfully transitioned to the new platform by year-end. We remain on track to fully migrate from the legacy Cint platform by the end of H1 2025.

We expect to complete the remaining consolidation and migration efforts in 2025.

Looking ahead
In January 2025, Cint announced a new three-year strategic plan to enhance the organization's efficiency following the completion of the platform consolidation during 2025 and shift the focus to profitable growth.
The objectives of the new strategy, Cint 2.0, are:
• Win with the Cint Exchange
• Accelerate new avenues for growth
• Streamline operations

As part of the refreshed strategy, Cint has set new med-term financial targets, including annual organic sales growth of over 10% and an EBITA margin of 25%. In 2025, the primary focus remains on completing the consolidation and migrating customers to the new Cint Exchange. In 2026, attention will shift toward accelerating innovation and new initiatives in order to achieve our new sales and profitability targets by 2027 and beyond.

Presentation today at 10.00 a.m. CEST
The report will be presented by Patrick Comer, CEO and Niels Boon, CFO at 10.00 a.m. CEST today. Follow the webcasted presentation here: webcast and conference call here: telco

The presentation material and a recorded version of the conference will be available at Cint™ Investors.