Slides
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Q4 Results 2024 Cyviz February 13th, 2025
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Agenda and Presenters 2 Q4’24 in brief Performance 2020 – 2024 Business Highlights Q4 & YTD Financials Outlook Q&A Espen Gylvik | CEO Karl Peter Gombrii | CFO Q4 Agenda
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33Q4’24 in brief Revenue of NOK 189 million in Q4, up 21 million (12%) compared to last year. Gross profit of NOK 96 million (50% margin), up NOK 7 million vs. last year (52% margin) EBITDA of NOK 19.8 million in Q4, down NOK 0.2 million vs. last year Order intake of NOK 181 million Solid Q4 caps off the best full-year performance on record Q4 & Full-year 2024 in brief Full-year revenue of NOK 595 million, up NOK 10 million (2%). Full-year gross profit of NOK 313 million, up NOK 25 million (9%). Full-year EBITDA of NOK 36.2 million, up NOK 8.3 million (30%). Full-year order intake of NOK 620 million Q4 FY
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4Trend 2020-2024 Cyviz Group ROLLING 12-MONTHS TREND 2020-2024 179 238 307 342 402 435 445 561 589 626 632 517 710 642 676 775 620 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 -13% ORDER INTAKE (MNOK) GROSS PROFIT (MNOK) EBITDA (MNOK) 102 100 122 122 142 147 156 185 220 257 280 282 289 295 286 306 313 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 +9% -3 -6 -2 -16 -15 -25 -28 9 30 37 25 28 30 21 36 36 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 +30% CAGR vs 2020 GROSS PROFIT ORDER INTAKE REVENUE 29% 33%34%
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Order intake pattern • Q4-2023 order intake includes a NOK 200 million multi-year deal, with deliveries spread across 2024 and 2025 • “Underlying” order intake smoother – Q4-24 order intake fourth highest on record following solid Q2 and Q3 • Backlog is solid at NOK 380 million after three consecutive quarters of strong order intake 5 55 88 107 92 115 121 117 208 143 159 123 93 136 91 156 192 181 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 +33% 55 88 107 92 115 121 117 208 143 159 123 93 91 156 192 181 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 336 -46% Reported order intake “Underlying” order intake (ex. Aker BP) 87 114 119 151 170 222 219 311 273 302 256 228 396 476 347 375 380 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Backlog
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Positive gross margin trend 6 45% 50% 55% 60% 65% 70% 75% 0% Q4-20 Q1-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q2-21 • Drift driven by larger projects with repeat accounts, and ARR • Gross profit fluctuates due to product mix and timing effects impacting quarterly performance • Gross margin 2024 is above average trend over time – reversal in 2025 anticipated Gross margin (Q) Gross margin (LTM)
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Business Highlights
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Q2 SIGNIFICANT WINS 8 Business Highlights - Q4 2024 Business highlights ORDER INTAKE BY VERTICALS – Q4 ORDER INTAKE BY REGION – Q4 25% 13% 57% Government & Defense 2% Other Corporate 4% Technology Energy 15% 26% 59% North America MEAP Europe The company is adjusting its regional governance structure where APAC and Middle East are combined into Middle East & Asia Pacific – hereinafter referred to as “MEAP”. Q4 SIGNIFICANT WINS Aker Solutions & Aker BP – USD 6.7m New iPort rooms and offshore control room projects reinforce Aker group’s trust in Cyviz SEC Unification Project, ~ USD 750k Cyviz remains the preferred partner for delivering high end collaboration and security op rooms in SEC New Logo – Saudi Principal Buyer Cyviz has won the opportunity to deliver several mission critical rooms for SPB European Defense Customer Cyviz has been chosen to deliver a strategic and reliable solution Consistent wins at KPMG – USD 1.3m KPMG continue to entrust Cyviz for their innovation labs in Manhattan West, NY 4 years extended support to DLA We have strengthened our relationship with DLA via long-term support contract Financial Institution, France Cyviz has been awarded a USD 1.3m contract for a strategic project in France for a financial institution
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Q2 SIGNIFICANT WINS 9 Business Highlights - Year-to-date Microsoft – USD 14.1m Microsoft continues to choose Cyviz to design, install, upgrade and maintain Envisioning Theaters globally. USD 5.7m Cyviz will deliver several high-end collaboration rooms for a government enterprise in Saudi Arabia New Logos: Visa , SPB Visa and Saudi Principal Buyer awarded Cyviz contracts worth more than USD 1.4 million KPMG – USD 1.65m KPMG continue to entrust Cyviz for their innovation labs in Manhattan West, NY IBM - Strategic Alliance Global strategic alliance partnership with IBM X-Force for advanced cybersecurity simulation centers USD 5.0 m Support & Maintenance Renewals from over 40 customers across the world 2.3m Aker Solutions new iPort Continued investment from Aker group in general and Aker solutions Stavanger for new rooms Business highlights ORDER INTAKE BY VERTICALS – YTD ORDER INTAKE BY REGION – YTD 31% 34% 35% North America MEAP Europe The company is adjusting its regional governance structure where APAC and Middle East are combined into Middle East & Asia Pacific – hereinafter referred to as “MEAP”. YTD SIGNIFICANT WINS 6% 12% 14% 26% 42% Other Corporate Government & Defense Technology Energy
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Q4 Financials 10
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11 Revenues • NOK 21 million (12%) revenue growth Gross profit • NOK 7.2 million growth (+5%) • Gross margin 50% vs 52% last year EBITDA • NOK 0.2 million decline (-1%) Bookings • NOK 155 million decrease (-46%) • Driven by a single, multi-year contract in December last year Q4 Financial highlights Q4 financials REVENUES (all figures in NOK million) GROSS PROFIT BOOKINGS EBITDA 143 159 123 93 336 91 156 192 181 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 -46.2% 17.6 2.7 11.6 -6.6 20.1 5.2 2.2 9.1 19.8 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 -0.2 82 66 78 57 88 72 69 77 96 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 +7.2 180 137 160 120 168 107 139 160 189 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 +12.4%
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12 Revenues • NOK 10 million revenue growth (+2%) • Driven by Q1 and Q2 product mix; higher-margin but lower revenues Gross profit • NOK 25 million growth (+8.5%) • Gross margin 53% vs 49% last year EBITDA • NOK 8.3 million growth (+30%) • Margin of 6.1% vs 4.8% last year Bookings • NOK 89 million decrease (-13%) • Driven by a single, multi-year contract in December last year Full-year results 2024 FY financials REVENUES (all figures in NOK million) GROSS PROFIT BOOKINGS EBITDA 402 589 710 620 2021 2022 2023 2024 -13% -14.8 9.0 27.9 36.2 2021 2022 2023 2024 +30% 142 220 289 313 2021 2022 2023 2024 +9% 323 486 585 595 2021 2022 2023 2024 +2%
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13 Key drivers Q4 • Operating result driven by positive EBITDA of NOK 19.8 million • Slightly faster collection and associated increase in AR with impact of 1.3 million • Inventory decrease improved cash by 10 million; high opening balance explained by multiple large, more complex projects • Reduction in payables related settlement of invoices related to higher than usual opening inventory Key drivers YTD • The high receivable collection reflects Q4-24 bookings, which were weighed to geographical areas that traditionally have shorter collection times (high Q1 collection), along with tighter collection regime throughout the year. • Increase in inventories primarily due to an overall larger scale of the business Operating cash flow Operating cash flow Q4 Operating cash flow Profit/loss before tax 1.3 Accounts Receivable 10.0 Inventories -20.1 Payables 21.1 Accruals and Prepayments 4.2 Depreciation and other Reported Operating Cash flow 17.1 33.7 Operating cash flow full-year ‘24 *Other items relates to change in option expense and income tax Profit/loss before tax 32.6 Accounts Receivable -11.9 Inventories -4.6 Payables -5.8 Accruals and Prepayments 24.0 Depreciation and other Operating cash flow 6.3 40.6
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Positive free cash flow (FCF) in 2024 • FCF of NOK 0.4 million despite substantial R&D investments • R&D investments anticipated to contribute to higher margins amid modest future CAPEX growth 14 Cash Flow from Operations Cash flow from operations entering positive territory Operational cash flows impacted by short-term fluctuations CAPEX R&D Investments dominate CAPEX spend New product lines ready for commercialization 10 11 13 13 15 22 15 27 2021 2022 2023 2024 25 34 28 40 R&D investments Other -20 -10 0 10 20 30 40 50 -14,8 -19,4 2021 9,0 -0,1 2022 27,9 -9,1 2023 36,2 40,6 2024 EBITDA Operational cash flow
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Outlook 15
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Profitable growth & cash management Increased focus on profitability through cost optimization, new services, and continued revenue growth. Putting new tighter processes in place for collecting cash, improved contractual terms and conditions. 16Outlook Scaling through “Integrator Kit” and “Software Management Platform” Scale through a global partner ecosystem, and drive ARR and subscription revenue by enabling partners to deliver managed services. Market disruption in 2025 Continuously innovate in our in-house technology and disrupt the market with our new software platform and services. Profitable growth driven by growing core business, newproducts and services, and cost optimization Outlook ly 1 2 3
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Q&A Q&A