GuruFocus - Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Itera ASA (STU:IRI) successfully won back a major global customer, impacting 35 to 40 consultants positively.
- The company signed two new large agreements with an estimated value of up to 500 million Norwegian Krone over four years.
- Itera ASA is expanding its presence by opening a new office in the Stavanger region through an acquisition, adding 20 skilled employees.
- The company has a strong cash conversion rate, with an EBITDA to cash conversion of 89%.
- Itera ASA is actively involved in rebuilding efforts in Ukraine, providing business advisory services and supporting housing projects.
- Revenue declined by 5% in the third quarter, primarily due to lower utilization of consultants.
- The company experienced a temporary loss of a major customer, impacting revenue and profitability.
- Itera ASA's EBIT margin decreased to 0.1% in the third quarter, down from 4.5% the previous year.
- The equity ratio decreased by 5 percentage points compared to the previous year.
- The company reduced its workforce by 63 employees over the last 12 months due to flattening demand.
A: Arne Mjos, CEO: A major global customer decided to return their project to Itera after an unsuccessful transition with another supplier. This win back involves 35 to 40 consultants and positively impacts our revenue and profitability starting November.
Q: What are the details of the new large agreements Itera signed this quarter?
A: Arne Mjos, CEO: We signed two large agreements with an estimated value of up to 500 million NOK over four years. One is a renewed framework agreement with Creditor, and the other is with ID, valued at 300 million NOK.
Q: How is Itera expanding its presence in the Stavanger region?
A: Arne Mjos, CEO: We are opening a new office in Stavanger through a small acquisition, adding 20 skilled employees. This region is strategically important due to its strong industrial cluster in offshore oil, gas, and renewable energy.
Q: What is Itera's strategy regarding the use of AI and cloud technologies?
A: Arne Mjos, CEO: We are focusing on cloud transformation and AI integration. Our platform, Sapiens, provides generative AI capabilities for employees. We see significant potential in cloud utilization, with only 20% currently leveraging full cloud capabilities.
Q: Can you discuss Itera's financial performance and outlook?
A: Bent Hammer, CFO: Revenue declined by 5% this quarter due to lower consultant utilization. However, subscription services grew by 8%. We are seeing early signs of market recovery and expect growth in 2025, focusing on profitable growth and cash generation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.