Tecnotree Reports Consistent Revenue, Margin Expansion and Three Consecutive Quarters Of Positive Free Cashflow

Tecnotree, a global digital platform and services leader for AI, 5G, and cloud-native technologies, today announced its financial results for the fourth quarter and full year of 2024. 2024 was a pivotal year for Tecnotree despite macro economic challenges, the company delivered 3 consecutive quarters of positive free cash flow achieving and strong ARR growth by 8% YoY from 2023. Further the company delivered on the guidance previously announced achieving a revenue increase of 4% YoY in constant currency, an increase of EBIT of 9% YoY in constant currency and an increase in Free Cash Flow by 7.9 Million Euro in 2024 from the previous period. In 2024, the company’s strategic cost optimization achieved higher savings than previously committed. Tecnotree had taken precautionary measures and made adequate provisions to exit markets which are characterised with geo-political risks, areas of conflict or regions with high risks of sanctions. Further, Tecnotree achieved a breakthrough Tier 1 telco deal in the United States, in collaboration with a leading Systems Integrator (SI) as previously announced, validating our investment in TM Forum Standards and our ability to secure recurring revenue streams in Dollar denominated enterprise markets, paving the way for sustainable growth in the future.

Q4 Results

• Net sales of EUR 17.6 million (22.2) -20.7% Year on Year, In constant currency,
  -16.5% Year on Year.
• Operating profit of EUR 10.9 million (7.9) +38.1% Year on Year.
• Operating margin of 61.7% (35.4%).
• Foreign exchange losses reduced EUR 0.3 million (6.0).
• Net income for the quarter was EUR 0.5 million (2.4) -79% Year on Year.
• Adjusted net income for quarter EUR 4.9 million (2.4) +104% Year on Year.
• Gross cash inflow from operating activities EUR 8.4 million (9.9).
• Positive free cash flow of EUR 0.4 million (-0.6), the third quarter in a row.
• Earnings per share EUR 0.03 (0.01*).
• Order book at the end of the period EUR 79.6 million (80.2).

Full year Results

• Net sales of EUR 71.6 million (78.4) –8.6% Year on Year, in constant currency +4.0% Year on Year, in line with guidance.
• Operating profit EUR 23.8 million (23.8) flat Year on Year, however operating profit margin expanded to 33.2% (30.4%). Operating profit in constant currency EUR 26.0 million, +9.0 % Year on Year in line with guidance.
• Foreign exchange losses reduced to EUR 2.5 million (9.7).
• Net Income for the period EUR 8.3 million (11.2) -25.8% Year on Year due to one-time items pertaining to EUR 7.3 million.
• Adjusted net income was EUR 15.6 million (11.2) +39.3% Year on Year.
• Gross cash inflow from operating activities EUR 21.3 million (17.4).
• Free cash flow stands at EUR -1.8 million ( -9.7).
• Free cash flow for H2 stands at EUR 2.2 million (-3.9) in line with guidance.
• Earnings per share were EUR 0.5 (0.04*).

"Tecnotree’s SISU-driven execution has delivered a pivotal year of transformation, resilience, and growth. With three consecutive quarters of positive free cash flow, a landmark Tier 1 telco deal in the U.S., and a strengthened focus on AI-powered automation, we have reinforced our financial position and market leadership. Our cost optimization initiatives exceeded expectations, while our ARR expansion and strategic shift to Tier 1 and dollar-denominated markets ensure a scalable and profitable future. As we step into 2025, we remain committed to driving AI-led innovation, sustainable growth, and delivering long-term value to our investors and customers."

– Padma Ravichander, CEO, Tecnotree

Significant milestones and business achievements for the year included:

• Tecnotree Increased productivity from AI/ML consistently executing 5-7 digital transformations per quarter, reinforcing our ability to scale revenue with efficiency.
• 2024 Gartner® Magic Quadrant for AI in CSPs – A first-time recognition for our AI-driven telco transformations.
• Among the Top 2 Global Telecom Revenue Management Providers (Precision Reports, for the 2nd consecutive year.
• Featured in 4 Gartner® HypeCycles & 2 Gartner® Market Guides for CSP digital marketplaces, revenue management, and Customer Management solutions.
• Named one of the fastest-growing BSS providers by Omdia in 2024, highlighting our momentum against legacy competitors.
• In 2024 Tecnotree for the second consecutive year was recognized as a top-performing company in the Nordic Business Diversity Index (Mid-Cap Segment), reinforcing our commitment to building inclusive, digitally connected communities while delivering strong financial outcomes.

About Tecnotree

Tecnotree is a 5G-ready digital Business Support System (BSS) player, with AI/ML capabilities and multi-cloud extensibility. Tecnotree leads the way on the TM Forum Open API Conformance with 59 certified Open APIs including 9 real-world open APIs, a testament to the company's commitment to excellence, and continuously striving to deliver differentiated experiences and services to both CSPs and DSPs. Our agile and open-source digital BSS Stack comprises the full range (order-to-cash) of business processes and subscription management for telecom and other digital services industries creating opportunities beyond connectivity. Tecnotree also provides Fintech and B2B2X multi-experience digital marketplace to its subscriber base through the Tecnotree Moments platform to empower digitally connected communities across gaming, health, education, OTT, and other vertical ecosystems. Tecnotree is listed on the Helsinki Nasdaq (TEM1V).

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