Investors

Outlook and guidance

Guidance (updated 6 September, 2024)

Tecnotree will reiterate its guidance for 2024 while updating its outlook and guidance for 2025.

• Revenue to be higher by 2%-7% in 2024 as compared to 2023
• Operating profit (EBIT) to be higher by 7%-15% in 2024 as compared to 2023
• Free cash flow (FCF) EUR 2-5m for H2 2024

In addition, Tecnotree will be providing new financial guidance for 2025. The company expects:

• Capex to Sales ratio to be 10%- 12%
• FCF to be greater than EUR 3m

As a reminder, the forward guidance for Revenue, Operating profit and Capex to sales are on a constant currency basis.

Previous guidance

• Revenue to be higher by 2%-7% compared to 2023
• Free Cash Flow of EUR 2-5 million in H2 2024
• Operating profit (EBIT) to be higher by 7%-15% compared to 2023

The company will continue its focus on increasing licence revenue while is moving constantly evolving from Projects delivery Licence and Delivery mode into an Annual Recurring Revenue model. This will ensure that the company will have more predictable and stable quarter on quarter revenue. However, revenue will be impacted in the shorter term. Telecom industry growth is poised at 2.1% annually from 2022-2027 and Tecnotree has been growing above the market. Further given the uncertain global economic scenario, the Company expects 2%-7% growth in revenue compared to 2023.

In 2024, the company is expecting higher cost optimisation which will result in higher Operating profit of 7%-15% compared to 2023. Foreign exchange rates are expected to remain at approximately current levels.