Vercom SA., a technology group specializing in providing global SaaS communication services, preliminarily summarizes its financial results in 2023. The past year represents yet another record-breaking period for Vercom Group. The gross margin amounted to PLN 181 million, an increase of 56% year-on-year. Adjusted EBITDA rose by 54% year-on-year to PLN 85 million, while free cash flows reached PLN 73 million, up by 62% year-on-year. Additionally, Vercom doubled its net profit from continuing operations to PLN 60 million, providing even greater room for the payout of a record dividend.
“We are not slowing down, another record year is behind us, and our results for Q4 2023 are strong. This is well demonstrated by our crossing of PLN 5 million of our internal EBITDA goal for the past year related to our bonus program. We can confidently say that we are on the right track to meet our goal of doubling the scale every two years,” comments Krzysztof Szyszka, President of Vercom’s Management Board.
In Q4 2023, Vercom recorded high organic growth dynamics, which exceeded 30% year-on-year. This translated into record levels of gross margin and EBITDA for the entire year. The increase in the share of SaaS services for SME customers directly influenced high cash flows from operating activities, which amounted to PLN 85 million in EBITDA. It is also worth emphasizing the significant reduction in debt. The ratio of net debt to EBITDA value at the end of 2023 was 0.6x, compared to 2.0x at the end of 2022.
“We are very pleased with the results obtained last year. In particular, I would like to highlight our record cash flows and low level of debt. Our model stands out with its exceptional ability to generate cash, which is confirmed by the high conversion of EBITDA to free cash flows of 85%. All this gives us even more room for dividend payments and more acquisitions,” adds Łukasz Szałaśnik, Vercom’s Finance Director.
At the end of the year, the company’s customer count reached almost 80,000, marking an impressive increase of over 13,000 customers year-on-year, which averages to gaining over 1,000 new SME customers monthly, mainly using Vercom’s self-service SaaS model. Focusing on selling services in the self-service model allows the group to scale faster on the global market and positively influence the gross margin on sales, which increased by 9 percentage points year-on-year.
