• Revenue: Increased by 4% versus Q4 2023, reaching EUR62.5 million for the quarter.
• Gross Profit: Up 6% compared to Q4 2023, totaling EUR26.1 million.
• Adjusted EBITDA: More than doubled compared to the previous year, reaching EUR5.4 billion.
• Net Result: Achieved a profit compared to a loss of EUR3.2 million in Q4 2023, with a full-year net result of EUR15.7 million.
• Full Year Revenue: Reached EUR313.7 million, in line with expectations.
• Dynamic Packages Revenue Share: Accounted for 57% of total group revenue, with a 13% point quarter-on-quarter increase in share.
• Cost Base: Reduced by 3% year over year, with marketing expenditure down 11%.
• Net Financial Position: Decreased from EUR27.8 million to EUR19.0 million, with significant reduction in gross debt from EUR72 million to EUR48 million.

• Warning! GuruFocus has detected 3 Warning Signs with XSWX:LMN.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revenue increased by 4% in Q4 2024 compared to Q4 2023, indicating growth despite a traditionally softer period.
• Gross profit rose by 6%, showcasing improved efficiency in variable costs.
• Adjusted EBITDA more than doubled compared to the previous year, reaching EUR5.4 billion.
• Full year net result more than doubled compared to 2023, reaching EUR15.7 million, marking a significant turnaround.
• Dynamic packages now account for 57% of total group revenue, reflecting a 13% point increase quarter on quarter.

Negative Points

• The B2C segment underperformed due to a competitive environment affecting flight sales.
• Net financial position decreased from EUR27.8 million to EUR19.0 million due to cash flow challenges.
• There was a significant remuneration for shareholders, including dividends and share buybacks, impacting cash reserves.
• Operating costs increased by 14% year over year due to continuous investments in tech infrastructure.
• The company faced disruptions with Ryanair, affecting transactions until a new agreement was signed.

Q & A Highlights

Q: Please comment on the cash flow evolution. It seems that you are burning cash. How much EBITDA is converted into cash? Could you provide guidance on the group's net cash by the end of 2025? A: Our business has a structural negative working capital, as we usually collect money at booking and pay later. The reduction of the gross travel value in 2024 by 14% negatively impacted working capital, especially in Q4. Additionally, higher adoption of our deferred payment model affected cash flow timing. In 2024, we also introduced dividends and a share buyback, impacting cash flow.

Q: Are there any plans to further reduce Freesailers ownership in percentage? A: We do not have any information about our shareholders' intentions. Changes in ownership become visible on the STIX website when an investor crosses a certain threshold, and we haven't seen any notifications yet.

Q: Could you provide details on the substantial CapEx in 2025 and what should we think about CapEx moving forward? A: The majority of CapEx was related to capitalized internal developments to improve our platform. The amount was higher than the previous year due to increased investment. We expect CapEx to remain similar to the growth of personal costs and possibly reduce compared to revenue growth.

Q: After your first five weeks, what is your first take on the status of the company? A: I've met a highly talented team and see opportunities for growth and improvement. We can reduce unnecessary complexity, improve scalability, and automate processes. The focus is on combining efficiency with growth in both top and bottom lines.

Q: What is your target debt run rate and your target year-on-year cash level? A: We will continue to reduce our gross debt as we better utilize cash balances across the group. Our net financial position is positive throughout the year, with a spike during summer months. We expect this trend to continue in 2025, especially as dynamic packages become more important.

Q: Please provide an update on your new partnership with Ryanair. What has changed, and what works better? A: We signed a new three-year agreement with Ryanair, allowing us to offer their flights in package holidays and to flight customers. Initially, integration was manual, but we now have a fully integrated solution connecting us to their inventory, which is already showing positive results.

Q: Which countries performed well in Q4? A: Most core markets performed well, but the standout growth came from tier two markets, particularly the Nordics, with Norway leading the growth.

Q: Adjusted EBITDA more than doubled in Q4 and grew 4% year-on-year. What were the key cost levers, and can this margin expansion continue? A: Q4 2023 had additional costs due to Ryanair disruptions, making for an easy comparison. Long-term, we aim to control costs without sacrificing growth, focusing on maintaining efficiency while expanding.

Q: What can we expect from your white label partnerships? A: We are exploring new partnerships to support growth. Booking.com is a major partner for our white label offering, and we also work with other travel brands. This strategy fits into a broader B2B2C distribution approach, with APIs allowing partners to connect directly to our system.

Q: Are you giving any guidance for 2025, if not now, when? A: We will provide an outlook for 2025 alongside the 2024 full-year results, scheduled for March 27, 2025.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.