Vitec Software Group Interim report January–March 2024


  • Net sales SEK 716 million (613), an increase of 17%
  • Recurring revenues SEK 616 million (509), an increase of 21%
  • EBITA SEK 220 million (185), an increase of 19%
  • EBITA margin 31% (30)
  • Operating profit SEK 153 million (123), an increase of 25%
  • Operating margin 21% (20)
  • Earnings per share before dilution SEK 2.28 (2.07)
  • Cash flow from operating activities SEK 694 million (489)
  • Acquisition of LDC

Strong cash flow and increased margins

As 2024 unfolds, the market landscape that concluded last year remains the same: an interim phase that has neither improved nor worsened. At the same time, we continue to show solid organic growth of 10% for our subscription-based recurring revenues, adjusted for currency effects. The majority of this year’s price adjustments were carried out in the first quarter, in accordance with our customer agreements, and largely follow the general price trend in each market.

The first quarter is traditionally our strongest in terms of cash flow and this year is no exception. Most of our subscription-based recurring revenues are billed in advance, providing us with a stable financial position and the conditions to take a long-term approach to our investment decisions. Revenues for the first quarter total SEK 716 million, reflecting a 17% increase year over year. Calculated on a rolling 12-month basis, our subscription-based revenues grew organically by 10% in local currencies, which is consistent with the end of last year. EBITA was SEK 220 million, an increase of 19% and the margin was 31%, up from 30%. We always endeavor to increase the margins and this development is therefore particularly gratifying. Continued high interest rates and increased tax expenses given our increasingly international operations are impacting our net profit, thus leading to a slightly smaller increase in earnings per share compared to the EBITA.

Culture and values are the glue that holds a growing Group like ours to- gether, providing the conditions for growth, development and innovation. In the short-term, the Annual General Meeting on April 23 and our big Management Conference, held in Umeå on May 28–29, are two important opportunities for us to meet, exchange experiences, discuss the business and be inspired by similarities and differences. The latter is a specific example of our cultural work and cohesion, which are facets that we highlight when meeting new companies and that are part of our unique offering.

In January, we welcomed Dutch LDC to the Group. This market-leading company has a platform for coaches and candidates in career and human resource management, reintegration, training and retraining. The products support labor market mobility through training, career coaching and matching candidates to available positions. We continue to look for new companies to add to our growing Group. Based on our criteria, we are able to maintain an agnostic view on vertical or geography for example, while remaining flexible in our setup to generate trust among entrepreneurs and deliver long-term value-creation for shareholders.

Olle Backman, CEO and President
Vitec Software Group