- After the first three quarters of 2024, the Ailleron Group achieved sales revenue of PLN 395 million, representing an increase of nearly 16% compared to the same period in 2023, including results from the U.S.-based company Prosoft LLC (number8) consolidated starting from Q2 2024.
- The reported EBITDA for the nine months of this year amounted to PLN 60.8 million, up by approximately 52% year-over-year, with operating profit reaching PLN 49.3 million.
- Net profit stood at approximately PLN 34.5 million, including net profit attributable to shareholders of the parent company of about PLN 13.2 million.
- Since the beginning of 2024, the Group has seen an increase in profitability. The EBITDA margin in Q3 2024 alone was 15.7% (+6.4pp YoY) and 15.4% for the nine-month period (+3.7pp YoY). Meanwhile, the net margin from July to September 2024 reached 6.8% (+8.2pp YoY) and 8.7% for the first three quarters (+4.7pp YoY).
- Exports accounted for 78% of revenue during the period under review. International sales grew to nearly PLN 306.8 million in the first three quarters of 2024, reflecting a year-over-year growth rate of over 22%.
- The Technology Services segment, operating within the Software Mind Group, achieved sales of PLN 343.2 million, marking a YoY growth of nearly 19%. The results were significantly influenced by the consolidation of Prosoft LLC (from Q2 2024). Operating profit amounted to just over PLN 54.6 million, indicating an operating margin of approximately 16%.
- The FinTech segment generated revenue of over PLN 50.1 million, slightly above the PLN 49.6 million recorded in the same period of 2023. However, it reported an operating loss of PLN 5.9 million due to the agreement with Pekao SA, historical seasonality, and delays in contract awards, now expected later in the year.
In the first three quarters of 2024, the Ailleron Group reported EBITDA of just over PLN 60.8 million, approximately 52% higher than the PLN 39.9 million achieved in the previous year, representing a value increase of nearly PLN 20.9 million. Other profitability indicators were as follows: operating profit reached nearly PLN 49.3 million, and net profit stood at approximately PLN 34.5 million (including PLN 13.2 million attributable to shareholders of the parent company). This reflects an over 67% improvement in operating profit compared to the same period last year and an approximately 2.5-fold increase in net profit.
“The high revenue level in the third quarter demonstrates that, despite the relatively challenging market environment, we can maintain significant growth momentum and consistently expand our presence in international markets. Starting from Q2 2024, we have consolidated results from the U.S.-based company number8, which contributed around PLN 65.8 million to the Group’s revenue during this period. Naturally, with exports comprising nearly 78% of our revenue, the strengthening of the złoty against foreign currencies, particularly USD and EUR, remains a challenge impacting our results structure,” explains Tomasz Król, Management Board Member and CFO of Ailleron S.A.
“Year-over-year, the Group shows growth in sales expressed in foreign currencies. Comparing average exchange rates used to convert revenue to Polish złoty between January and September 2024, there has been a notable drop of over 6.5% (27 groszy) for USD/PLN and 6% (28 groszy) for EUR/PLN. This results in approximately PLN 19.5 million lower YoY revenue due to exchange rate effects alone,” adds Tomasz Król.
In Q3 2024 alone, the Group generated PLN 145.5 million in revenue, representing a 27% YoY increase. High sales levels and sustained margins resulted in doubling EBITDA, which reached PLN 22.8 million (+114% YoY). During this period, the Group reported a net profit of nearly PLN 10 million, compared to a net loss of PLN 1.7 million in Q3 2023.
In the FinTech segment, revenue during the analyzed period was slightly higher than in the same period of 2023, reaching nearly PLN 50.1 million. For the first three quarters, the operating loss amounted to PLN 5.9 million.
“The FinTech segment’s results were impacted by the agreement with Pekao SA, historical seasonality, and delays in tender decisions, now expected by year-end. It’s worth noting that we are actively pursuing new contracts, and the high qualifications gained through current agreements enable us to expand our offerings to foreign entities, particularly banks and leasing companies,” says Piotr Piątosa, Vice President of the Management Board and COO of Ailleron SA. “In addition to developing our flagship LiveBank24 solution, we are working on several turnkey implementations for banking clients. Custom software development for these entities, as well as addressing emerging needs for AI implementations in banking systems, is a significant trend supporting our business,” adds Piotr Piątosa.
In the dominant segment of the Group, led by Software Mind – the Technology Services segment – sales from January to September 2024 reached approximately PLN 343.2 million, representing a YoY increase of nearly 19%. Key factors influencing this revenue level included the positive effect of number8’s consolidation (from Q2 2024) and the adverse impact of exchange rate fluctuations, which reduced PLN-denominated revenue YoY. Operating profit amounted to just over PLN 54.6 million, equating to an operating margin of approximately 16%.
“Software Mind has built its reputation by helping clients accelerate software development and bring cloud-based, AI-driven, machine learning, and data science solutions to market more efficiently. We observe that the startup and fast-growing company sector is entering a new growth phase, while corporate clients increasingly recognize the need to digitize their processes. For most companies, we are the first choice,” says Grzegorz Młynarczyk, President of Software Mind and Vice President of the Management Board of Ailleron SA. “Our ambitious growth plans include acquiring software houses in the CEE and LATAM regions, enabling us to scale operations to meet client development needs by expanding our pool of top talent in a nearshore model,” adds Grzegorz Młynarczyk.
Export sales remain dominant within the Ailleron Group, maintaining a steady upward trend in recent years. Export revenue rose to nearly PLN 306.8 million from January to September 2024, reflecting a YoY growth rate of over 22% (a nominal increase of PLN 55.2 million).
“Global digital transformation is accelerating across sectors such as banking, healthcare, education, and industry. Companies increasingly invest in cloud technologies, artificial intelligence (AI), machine learning (ML), and business process automation to enhance efficiency and reduce operational costs. According to Gartner forecasts, global IT spending in 2024 could grow by over 8%, driven by digitization and innovation,” adds Grzegorz Młynarczyk.
