Cint

Third 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 increased by 1.0 percent to EUR 42.4m (41.9 pro forma) and by 1.6 percent on a constant currency basis. Reported net sales last year amounted to EUR 66.6m.
• Gross profit amounted to EUR 37.3m (36.6 pro forma) corresponding to a margin of 88.0 percent (87.4 pro forma). Reported gross profit last year amounted to EUR 41.4m and reported gross margin last year was 62.2 percent.
• EBITA amounted to EUR 11.7m (9.2) with an EBITA margin of 27.5 percent (22.0 pro forma). Reported EBITA margin last year was 13.9 percent.
• EBIT amounted to EUR 3.1m (-21.4) with an EBIT margin of 7.2 percent (-51.0 pro forma). Reported EBIT margin last year was -32.1 percent.
• EPS, before dilution amounted to EUR 0.00 (-0.09).
• Adjusted EPS, before dilution amounted to EUR 0.03 (0.02).

January - September 2024

• Net sales amounted to EUR 120.8m (120.9 pro forma) and were stable also on a constant currency basis. Reported net sales last year amounted to EUR 194.2m.
• Gross profit amounted to EUR 104.2m (105.3 pro forma) corresponding to a margin of 86.3 percent (87.1 pro forma). Reported gross profit last year amounted to EUR 120.0m and reported gross margin last year was 61.8 percent.
• EBITA amounted to EUR 20.3m (16.5) with an EBITA margin of 16.8 percent (13.6 pro forma). Reported EBITA margin last year was 8.5 percent.
• EBIT amounted to EUR -10.5m (-37.2) with an EBIT margin of -8.7 percent (-30.8 pro forma). Reported EBIT margin last year was -19.2 percent.
• EPS, before dilution amounted to EUR -0.07 (-0.15).
• Adjusted EPS, before dilution amounted to EUR 0.04 (0.04).

Significant events during the period
In September, Cint announced that Patrick Comer, who has served as Chairman of the Cint Board, assumed the role of CEO and that Anna Belfrage, previously Deputy Chair of the Cint Board, assumed the role of Chair. Furthermore, Brett Schnittlich was appointed and assumed the role as Chief Operating Officer and member of the Global Leadership Team. Felicia Winberg has resigned from her role as General Counsel and will leave the company on 30 November.

CEO Patrick Comer comments:
It is an honor to step into the role of CEO after 2.5 years as the Chair of the Board, bringing over two decades of industry experience with me. In the near-term focus will remain on executing the ongoing platform consolidation while positioning Cint for a future defined by growth, innovation and commercial excellence.

Sales and profitability
Net sales in the third quarter 2024 increased by one percent to EUR 42.4m compared with EUR 41.9m pro forma in the same period last year. Similar to earlier quarters this year, sales in Cint Exchange were slow as a result of lower demand from some key customers and overall uncertain economic conditions. This was offset by a continued strong momentum in Media Measurement driven by growth from existing customers but also from new client gains.
Higher gross margin at 88.0 percent (87.4 pro forma) and lower operating expenses resulted in improved EBITA margins to 27.5 percent (22.0 pro forma). Operating expenses were lower partly as a result of the efficiency program communicated in July and in addition, G&A costs decreased quarter-on-quarter due to changed assumptions regarding the long-term incentive programs, reducing costs by EUR 2.0m compared to EUR 0.9m last year.
Net cash flow for the quarter amounted to EUR -7.0m (-4.3). Cash flow from operating activities before changes in working capital increased to EUR 11.6m (5.1). However, this was more than offset by negative cash flow related to working capital and a loan repayment of EUR 3.6m. Working capital was mainly affected by a reduction of accounts payable and an increase in unbilled revenue compared to the previous quarter. Managing our working capital remains a key focus area for the company, primarily on reducing accounts receivable.

Platform consolidation
The work on consolidating our technology platforms into the new unified Cint Exchange is progressing. Building on the strong foundations laid by Giles Palmer through the development and execution of an integration and migration plan, we anticipate that this process will be completed by the end of H1 2025. Progress is also being made regarding the migration of our customers to the Cint Exchange. By the end of Q3, we had successfully migrated 66 percent of our total customers, and by the end of the year, we will have 75-80 percent of the customers migrated.

Looking ahead
Following the completion of the platform consolidation in the first half of 2025, we will be able to accelerate innovation and expand our commercial footing further, especially within our core market-place business.
As we work on the platform consolidation and migration of customers to the new platform, we anticipate modest year-on-year sales growth, especially given the persisting macroeconomic challenges. Nevertheless, we expect a seasonally strong fourth quarter in terms of sales and profitability, also driven by the efficiency program announced in July of this year.
Once we complete our platform integration and strengthen our commercial team, we will be well-positioned to scale and capture new growth opportunities. With a solid foundation, we are ready to drive innovation and efficiency, ensuring long-term success.

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 via a webcast conference call. Follow the webcasted presentation and conference call live at: webcast

For participation in the telephone conference, please make sure you are connected to the conference call by calling in and registering a few minutes before the conference begins.

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