Digital Workforce Services Plc: Financial Statements Bulletin, January 1 – December 31, 2024: Strong growth in Healthcare sector and Continuous services led to a nearly 10% increase in revenue and a significant improvement in profitability
Company Announcement February 19, 2025 at 8am EET
Financial Statements Bulletin, January 1 – December 31, 2024 (unaudited)
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
STRONG GROWTH IN HEALTHCARE SECTOR AND CONTINUOUS SERVICES LED TO A NEARLY 10% INCREASE IN REVENUE AND A SIGNIFICANT IMPROVEMENT IN PROFITABILITY
Continuous Service revenue from strategically important Outsmart hyperautomation services grew by 18.9% in the last quarter, 17.6% in the second half and 13.5% in the financial year. Both EBITDA and EBIT were positive in the financial year, reflecting the successful implementation of the company's profitable growth strategy.
October-December 2024:
Revenue was EUR 7.0 (6.4) million and increased by 10.5%.
- EBITDA was EUR -0.1 (-0.7) million and adjusted EBITDA EUR 0.3 (-0.2) million.
- Operating profit was EUR -0.1 (-0.8) million.
- Revenue from Continuous Services was EUR 4.6 (3.9) million and increased by 18.9%. The percentage of revenue increased to 65.1% (60.5%).
- Revenue from Professional Services was EUR 2.5 (2.5) million and decreased by -2.4%. The percentage of revenue was 34.9% (39.5%).
July-December 2024:
- Revenue was EUR 13.6 (12.3) million and increased by 10.2%.
- EBITDA was EUR 0.1 (-0.8) million and adjusted EBITDA EUR 0.5 (-0.2) million.
- Operating profit was EUR 0.0 (-0.9) million.
- Revenue from Continuous Services was EUR 9.0 (7.6) million and increased by 17.6%. The percentage of revenue increased to 65.9% (61.7%).
- Revenue from Professional Services was EUR 4.6 (4.7) million and decreased by -1.7%. The percentage of revenue was 34.1% (38.3%).
January-December 2024:
- Revenue was EUR 27.3 (24.9) million and increased by 9.4%.
- EBITDA was EUR 0.6 (-0.6) million and adjusted EBITDA EUR 1.0 (0.2) million.
- Operating profit was EUR 0.3 (-0.8) million.
- Revenue from Continuous Services was EUR 17.3 (15.2) million and increased by 13.5%. The percentage of revenue increased to 63.4% (61.1%).
- Revenue from Professional Services was EUR 10.0 (9.7) million and increased by 3.0%. The percentage of revenue was 36.6% (38.9%).
- Earnings per share (EPS) amounted to EUR 0.05 (-0.06).
- The Board of Directors' proposal to the Annual General Meeting is a dividend of EUR 0.03 per share and an additional dividend of EUR 0.06 per share.
- At the end of the reporting period, cash and bank receivables and other liquid assets were at EUR 13.0 (13.2) million.
- The number of employees at the end of the reporting period was 175 (177) and the average number of employees was 178 (186).
Other events during the period
- On January 8, 2024, the company announced that Leon Stafford will leave his role as Head of Sales UK & Ireland on January 12, 2024 to pursue a career outside Digital Workforce.
- On January 15, 2024, the company signed a 3-year contract with a well-known global engineering company. The contract is estimated to be worth a minimum of EUR 0.8-1.2 million over the contract period.
- On February 8, 2024 the company appointed Karli Kalpala as Head of Region UK & Ireland and Head of Strategy Transformation.
- On February 9, 2024 Digital Workforce was selected to implement two major data migration projects for the Central Uusimaa Wellbeing Services County (Keusote). The projects have a combined value of EUR 0.6 million and an estimated duration of 12 months.
- The company completed the acquisition of the company's own shares on March 20, 2024. Digital Workforce acquired 75 358 own shares with a total value of EUR 249 980.15 and an average price of EUR 3.3172.
- On April 3, 2024, the company announced the appointment of Juha Nieminen (Master of Science – MS, Industrial Engineering and Management) as Head of Sales Finland & Group Sales Operations and a member of the Management Team starting 8 April 2024.
- On April 23, 2024, the company announced receiving a significant order from an existing client for professional services in the United States worth approximately EUR 2.7 million for the next 12 months.
- On May 7, 2024, the company announced that based on the authorization given by the Annual General Meeting on 11 April 2024, the Board of Directors of Digital Workforce Services Plc has decided to start the acquisition of the company’s own shares. The maximum number of shares to be acquired is 110 000 which corresponds to approximately 1 per cent of the company’s shares. However, the amount used for acquiring shares will be at most EUR 200 000.
- On May 13, 2024, the company announced that Juha Järvi (MSc (Econ)) will leave his position as Global Head of Healthcare and his seat as a member of the Management Team as of 2 August 2024 to pursue his career outside Digital Workforce Services.
- On June 28, 2024, the company received a contract worth EUR 1.4 million from the Pirkanmaa Wellbeing Services County for the transfer of active social care customer data.
- The company shared on July 2, 2024 about a strategic partnership with Sema4.ai to Deliver AI Agents on its Outsmart Platform.
- The company completed the acquisition of the company's own shares on August 27, 2024. Digital Workforce acquired 48 083 own shares with a total value of EUR 199 856.30 and an average price of EUR 4.156486. After the acquisitions, Digital Workforce holds a total of 123 441 own shares, corresponding to approximately 1,10% of the total number of shares.
- On December 3, 2024 company announced that it refines its strategy and raises its profitability targets by 2026
Outlook for 2025
Digital Workforce's full-year 2025 revenue is expected to be higher than in 2024 and adjusted EBITDA is projected to improve compared to 2024.
Financial targets for the strategy period
- The company aims for an annual revenue of EUR 50 million in 2026. Revenue of approximately EUR 40 million is expected through organic growth and approximately EUR 10 million through inorganic growth. The share of strategically important continuous services is aimed to increase to over 70% of revenue during the strategy period.
- The company aims to reach an adjusted EBITDA level of over 15% by the end of 2026.
Key figures
1 000 euros | 10-12/2024 | 10-12/2023 | Change % | 7-12/2024 | 7-12/2023 | Change % | 1-12/2024 | 1-12/2023 | Change % |
Net sales | 7 043 | 6 374 | 10.5% | 13 593 | 12 329 | 10.2% | 27 256 | 24 919 | 9.4% |
Professional Services net sales | 2 461 | 2 520 | -2.4% | 4 638 | 4 718 | -1.7% | 9 981 | 9 693 | 3.0% |
Continuous Services net sales | 4 582 | 3 854 | 18.9% | 8 955 | 7 612 | 17.6% | 17 275 | 15 226 | 13.5% |
Continuous Services' share of net sales | 65.1 % | 60.5 % | 65.9 % | 61.7 % | 63.4 % | 61.1 % | |||
Gross profit | 2 318 | 1 912 | 21.2% | 4 469 | 3 914 | 14.2% | 9 525 | 8 226 | 15.8% |
% of net sales | 32.9 % | 30.0 % | 32.9 % | 31.7 % | 34.9 % | 33.0 % | |||
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EBITDA | -54 | -716 | -92.4% | 122 | -789 | -115.5% | 614 | -649 | -194.6% |
% of net sales | -0.8 % | -11.2 % | 0.9 % | -6.4 % | 2.3 % | -2.6 % | |||
EBITDA adj. * | 282 | -244 | -215.6% | 495 | -153 | -424.7% | 988 | 155 | 535.5% |
% of net sales | 4.0 % | -3.8 % | 3.6 % | -1.2 % | 3.6 % | 0.6 % | |||
EBIT | -146 | -761 | -80.9% | -37 | -881 | -95.8% | 268 | -844 | -131.7% |
% of net sales | -2.1 % | -11.9 % | -0.3 % | -7.1 % | 1.0 % | -3.4 % | |||
Net income | 62 | -842 | -107.4% | 267 | -885 | -130.2% | 590 | -697 | -184.7% |
EPS, eur | 0.01 | -0.07 | 0.02 | -0.08 | 0.05 | -0.06 | |||
Dividend (proposal)** |
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| 0.09 | 0.00 |
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Capital expenditure |
| -437 | -280 | -609 | -809 | ||||
Operating cash flow |
| 1 387 | -1 054 | 195 | -3 649 | ||||
Net debt | -12 199 | -12 247 | -12 199 | -12 247 | -12 199 | -12 247 | |||
Net debt ratio, % | -82.2 % | -83.1 % | -82.2 % | -83.1 % | -82.2 % | -83.1 % | |||
Equity ratio, % | 72.9 % | 70.8 % | 72.9 % | 70.8 % | 72.9 % | 70.8 % | |||
Personnel at the end of the period | 175 | 177 | 175 | 177 | 175 | 177 | |||
Average number of personnel | 178 | 182 | 179 | 183 | 178 | 186 |
* The EBITDA adjustment consists of restructuring- and write-off costs in 2024. In 2023 the EBITDA adjustment consists of restructuring costs. ** The Board of Directors proposes a dividend of EUR 0.03 per share and an additional dividend of EUR 0.06 per share to be paid for 2024.
CEO Jussi Vasama:
"I am very pleased and proud of our company's achievements in 2024. We improved our performance in all key performance indicators compared to the reference period. The execution of our profitable growth strategy was very successful in a generally difficult market environment for IT services companies, and we achieved growth of nearly 10% and an adjusted EBITDA of EUR 1 million. EBIT was also clearly positive for the full year and cash flow was clearly positive in the second half of the year.
I am particularly pleased with the growth in the Continuous Services business, which accelerated towards the end of the year to 18.9% in the fourth quarter and 13.5% for the full year. In line with our target, Continuous Services revenue accounted for almost 2/3 of total revenue in the fourth quarter.
The major Healthcare customer projects in new customer accounts progressed well and we grew our Healthcare business, and our team of industry experts as planned. Healthcare is the company's key growth area, and we successfully grew our social and healthcare business in all our markets.
On 3 December 2024, we announced the strategy execution focus areas set by the Board of Directors with the aim of accelerating profitable growth towards the end of the strategy period 2024-2026.
The first of the strategy execution cornerstones is to revolutionize the way large organizations do knowledge work: we are expanding our continuous services business and Outsmart automation platform with Enterprise AI Agents by creating unique, measurable customer value to knowledge work automatization. This work was already progressing rapidly during the autumn, particularly in the insurance sector. We are in the process of developing autonomous AI agents to independently handle certain sets of work tasks.
The second strategy execution cornerstone relates to the transformation of our Outsmart automation services' core business where we maximize customer benefits from our productized service offering. Simultaneously we use AI in everything we do to improve the productivity of our own work.
As a third cornerstone, we aim to be the market leader in care pathway solutions for social and healthcare services: We focus on productized automation solutions for care and customer pathways. The productization of service solutions for long care pathways is progressing well. We see significant opportunities in this area, both to radically increase the productivity of healthcare professionals and to improve patient safety and patient experience.
We also announced that the fourth cornerstone of our strategy is to accelerate growth through acquisitions: we are actively seeking opportunities for acquisitions that support our profitable growth strategy. This work is also progressing as planned.
The company clearly raised its financial targets to achieve its profitable growth strategy by the end of 2026. This will be made possible by a very good performance in 2024. I would like to thank our staff, our partners and our customers for their cooperation and trust in our company and our services. I strongly believe that we offer the market a truly unique, revolutionary approach to how knowledge work will be done and automated in large organizations in the future. This gives us a good chance of success also in 2025."
Helsinki February 18, 2025
Digital Workforce Services Plc
Board of Directors
For further information. please contact:
Jussi Vasama, CEO, Digital Workforce Services Plc. Tel. +358 50 380 9893
Certified advisor
Aktia Alexander Corporate Finance Oy. Tel. +358 50 520 4098
About Digital Workforce Services Oyj
About Digital Workforce Services Plc
Digital Workforce Services Plc is a leader in business automation and technology solutions. Its Outsmart platform and services, including Enterprise AI Agent solutions, empower organizations to transform knowledge work, reduce costs, accelerate digitalization, enhance customer experiences, and strengthen their competitive edge. Over 200 large international organizations rely on the company’s services to drive transformation through automation. Digital Workforce has particular expertise in automating healthcare and social care pathways, advancing long-term condition follow-up, improving patient safety, and enhancing the productivity of healthcare professionals. Founded in 2015, Digital Workforce employs over 200 business automation specialists across the US, UK & Ireland, and Northern and Central Europe. The company is listed on the Nasdaq First North Growth Market Finland.