Siili Solutions Plc, Business review, 1 January–30 September 2024

Siili successfully launched the implementation of its new strategy in challenging market conditions

Siili Solutions Plc Stock Exchange Release 22 October 2024 at 9:45 am EEST

Key figures

EUR million	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023
Revenue	24.1	27.0	83.3	92.3
Revenue growth. EUR million	-2.9	0.1	-9.0	6.5
Revenue growth. %	-10.8%	0.5%	-9.8%	7.6%
Organic revenue growth. EUR million	-2.9	-1.2	-9.0	2.3
Organic revenue growth. %	-10.8%	-4.1%	-9.8%	2.6%
Adjusted EBITA	0.7	1.3	4.0	6.3
Adjusted EBITA. % of revenue	2.9%	4.7%	4.8%	6.8%
EBITA	0.7	1.3	3.4	6.3
EBITA. % of revenue	2.9%	4.7%	4.1%	6.8%
Average number of employees during the period	956	1,057	976	1,049
Number of employees at the end of the period	945	1,053	945	1,053
Number of full-time employees (FTE) at the end of the period	909	1,023	909	1,023
Number of full-time subcontractors (FTE) at the end of the period	148	172	148	172

 

Key events in July-September:

• On 13 August 2024, Siili published its new strategy placing AI and data at its core.
• On 17 September 2024 Siili published a profit warning and lowered its financial guidance for 2024 revenue and adjusted EBITA.
• Activity in sales created good ground for strategy implementation.
  
  

Outlook for 2024:

The updated financial guidance of revenue for 2024 is expected to be EUR 106–116 million and adjusted EBITA EUR 4.5–6.5 million.

The previous guidance for the current year's revenue was EUR 120-140 million and adjusted EBITA EUR 7.5-10.5 million.

CEO Tomi Pienimäki:

In July–September, Siili continued to lay a solid foundation for the implementation of its new strategy in spite of challenging market conditions.

Revenue for the third quarter declined 11% year-on-year, to stand at approximately EUR 24 million. Adjusted EBITA for the quarter was EUR 0.7 million and about 3% of revenue.

The overall state of the IT service market has remained challenging, and recovery of the markets is taking longer than expected. Decision-making by customers on starting new projects continues to be slow, despite increased activity among customers. Against this backdrop, in September, we updated our guidance on revenue and adjusted EBITA for 2024.

As an example of positive developments in sales, I would like to highlight a significant new customer in the German automotive industry, starting out with a contract of approximately EUR 8 million for the next five years. Siili was also selected by several industry-leading AI users as a partner in data and AI projects. Growth in this area is one of our strategic priorities. For the time being, AI projects tend to be small, but they represent important openings in building long-term partnerships. We have continued to strengthen the data and AI competencies of the Siili team, both by training the personnel and by new recruitments.

In August, we announced a new strategy, placing artificial intelligence and data at its core. In October, we published a Handbook on AI-powered software development. In the book, our experts describe, in concrete terms, new ways of working that are already changing the way how the Siili team operates and that will strengthen our position as a leader in the utilisation of artificial intelligence in software development.

In October, Siili appointed Maria Niiniharju as VP Private Business and member of management team. Niiniharju brings us strong experience in business development as well as valuable data and AI expertise, which is perfect fit to accelerate Siili's strategy execution.

Siili achieved 10th place in the Young Professional Attraction Index survey by Academic Work. Our goal is to be a community of top talent, and in line with our strategy, we will continue to endorse a strong corporate culture and continuous learning opportunities for the personnel.

Siili will arrange a Capital Markets Day on 26 November 2024. In the event, we will describe our new strategy, our AI and data expertise as well as our financial standing.

Despite the challenges of the operating environment, we believe in the normalisation of the markets, although the turnaround has been delayed. I want to extend my thanks to the entire Siili team and our customers for the past third quarter of the year. We are in a good position to continue the roll-out of our renewed strategy towards the end of the year.

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This is not an interim report under IAS 34. The company complies with the half-yearly reporting requirements of the Securities Markets Act and publishes business reviews for the first three and nine months of the year, which present key information on the company’s financial performance. The financial information presented in this business review is unaudited.

Further information:

CEO Tomi Pienimäki

Tel: +358 40 834 1399, email: tomi.pienimaki(at)siili.com

CFO Aleksi Kankainen

Tel: +358 40 534 2709, email: aleksi.kankainen(at)siili.com

Distribution:

Nasdaq Helsinki Ltd
Main media
www.siili.com/en

Siili Solutions in brief:

Siili Solutions Plc is a forerunner in AI-powered digital development. Siili is the go-to partner for clients seeking growth, efficiency and competitive advantage through digital transformation. Our main markets are Finland, the Netherlands, the United Kingdom, and Germany. Siili Solutions Plc’s shares are listed on the Nasdaq Helsinki Stock Exchange. Siili has grown profitably since its founding in 2005. www.siili.com/en

Attachment

• Siili Solutions Plc Business review 1 January-30 September 2024