- Adjusted EBITDA - 6 billion rubles.

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or the nine months of 2024, Softline PJSC achieved the following financial results: the group's turnover increased by 35% year-on-year to RUB 71.1 billion. About 29% of the figure came from sales of the company's own solutions; gross profit in the reporting period increased by more than 90%, to RUB 23.9 billion. Gross profit received from the group's own solutions more than doubled and amounted to RUB 15.1 billion, which is more than 63% of the company's total gross profit. As a result, the group's gross profitability for the nine months of 2024 reached 33.7% (+9.9 p.p. year-on-year); the company's adjusted EBITDA for the nine months of 2024 more than doubled compared to the figure recorded for the nine months of 2023, to RUB 4.6 billion; the group's net profit for the specified period exceeded RUB 1.5 billion.

Softline forecast for 2024:

- Turnover - 110 billion rubles.
- Gross profit - 30 billion rubles.


Freedom Finance Global indonesia telegram Lead Analyst Natalia Milchakova noted that Softline published strong financial results for the third quarter and nine months of 2024 for a fast-growing IT company: "We can highlight revenue growth for nine months by 35% year-on-year and by 28% for the third quarter in annual terms. Almost 30% of revenue comes from sales of our own solutions, and this is also important, since an increase in the share of revenue from our own solutions allows us to save on costs. Judging by the dynamics of gross profit and adjusted EBITDA, the company knows how to manage expenses. Thus, in the third quarter, gross profit increased year-on-year by 43%, and for nine months in annual terms - even by 92%. At the same time, adjusted EBITDA doubled in annual terms both in the third quarter and for the first nine months of this year."

Leonid Delitsyn, an analyst at Finam, believes that Softline is a unique company on the Russian stock market; it has no analogues among domestic public companies: "This is the only company going from a distributor to a developer. There have been no integrators on our stock market for a long time, but there are developers now. They have significantly lower turnover, but higher margins. Therefore, comparing them to anyone on our stock market makes no sense."

Chief Investment Consultant of Veles Capital LLC Dmitry Sergeev noted that not all companies in the IT industry track the "profitability of their own solutions" indicator: "If we talk about the turnover growth indicators of IT sector companies for the first nine months of 2024, the turnover of Astra increased by 98% (full reporting will be available only on November 19, 2024), the turnover of Diasoft LLC increased by 43% (according to RAS), Positive Technologies JSC increased its revenue by 16% (although Positive will only have 70-75% of its revenue in Q4 2024). If Softline reaches its target revenue for the entire 2024 in the amount of RUB 110 billion (50% y/y), its indicators will be weaker than Astra's, but better than at Diasoft and Pozitiv.

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