NYSE$STC

Stewart Information Services Corporation · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Sangoma Technologies Corporation announced its fourth quarter and fiscal year 2024 financial results, achieving fiscal year guidance and a significant increase in net cash provided by operating activities.

Sangoma Technologies Corporation reported total revenue of $60.934 million for Q4 FY2024, a decrease of 4% compared to Q4 FY2023. The company achieved a net loss of $1.708 million and an Adjusted EBITDA of $11.110 million for the quarter. Net cash provided by operating activities increased by 8% year-over-year for the quarter.

  • Total Revenue for Fiscal 2024 was $247.3 million, within the guided range of $246.5 to $248.5 million.
  • Adjusted EBITDA for Fiscal 2024 reached $42.6 million, aligning with the guidance range of $41.5 to $43.5 million.
  • Net cash provided by operating activities increased by 67% for the full fiscal year 2024 compared to the prior year.
  • Gross margin for fiscal 2024 increased to approximately 70% of revenue, up from 68% in fiscal 2023, driven by a favorable Services/Product revenue mix.

Headline financials

Total Revenue

$666M

Previous: $582M+14.4%
EPS (adj)

-$0.05

Previous: $0.60-108.3%
Net Cash Provided by Operations

$68M

No prior period
Title Loss Expense as % of Revenue

3.7%

No prior period
Consolidated Employee Costs as % of Revenue

30.7%

No prior period
Consolidated Other Operating Expenses as % of Revenue

25.0%

No prior period
Title Employee Costs & Other OpEx as % of Revenue

49.0%

No prior period
Average Domestic Commercial Fee/File

$19.6K

No prior period
Average Domestic Residential Fee/File

$2.9K

No prior period
Capital Expenditures

-$12.3M

No prior period
Net Income

-$1.71M

Previous: $8.8M-119.4%
Operating Income

$41.6M

Previous: $18.8M+121.3%
Gross Profit

$41.8M

Previous: $381B-100.0%

Revenue & EPS history

Stewart · Revenue · Quarterly

$666M

Q4 2024+14.4%vs Q4 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Stewart · $524M total across 2 segments · Q1 2023

  • Title Segment
    $462M
  • Real Estate Solutions Segment
    $62.6M-29.9%

Forward guidance

For fiscal 2025, Sangoma expects revenue in the range of $250 million to $260 million and Adjusted EBITDA from $42 million to $46 million, inclusive of $2.1 million in one-time ERP costs. For Q1 fiscal 2025, revenue is expected to be in the range of $61 million to $62 million and Adjusted EBITDA of $9 million to $10 million.

Tailwinds

  • Guidance for FY2025 revenue and Adjusted EBITDA indicates continued growth and profitability.
  • The company's strong financial position and cash balance provide confidence for future growth.
  • An experienced go-to-market team is in place with a formidable growth plan.
  • Underlying infrastructure is in place to support growth initiatives.
  • The company expects continued demand and subscriber growth for Services and Products.

Headwinds

  • The guidance for Adjusted EBITDA includes $2.1 million in one-time ERP costs for FY2025.
  • Macroeconomic conditions such as inflation, interest rates, recessions, invasions, or declarations of war could impact results.
  • Changes in global exchange rates could affect demand for Products and Services.
  • Potential delays in receipt of products from contract manufacturers or increases in manufacturing/shipping costs could impact performance.
  • The ability to attract and retain employees is crucial for maintaining momentum.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.6%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.9%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+15.5%

Q3 2014

Best reaction

-13.5%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.9%+4.4%-1.0%
Q4 2025+2.9%+4.4%-2.7%
Q3 2025-4.4%-4.6%-0.9%
Q2 2025-1.2%-1.5%+3.9%
Q1 2025-1.9%-2.3%-9.0%
Q4 2024+3.9%+3.4%+4.8%
Q3 2024+5.1%+2.3%+9.8%
Q2 2024-2.0%-4.2%-1.0%
Q1 2024-3.1%-0.8%+1.4%
Q4 2023-1.3%+3.5%+1.2%
Q3 2023+7.8%+8.6%+16.1%
Q2 2023+1.8%+1.9%-3.9%
Q1 2023+3.1%+4.2%+12.5%
Q4 2022-12.1%-8.1%-22.1%
Q3 2022-6.7%-9.2%+1.6%
Q2 2022+4.1%+5.6%+3.1%
Q1 2022+1.2%+1.2%+9.9%
Q4 2021-4.2%-8.8%-10.8%
Q3 2021-1.3%+0.2%+7.0%
Q2 2021+2.6%+5.3%+6.7%
Q1 2021+1.5%+5.5%+7.8%
Q4 2020+3.1%+4.8%+5.6%
Q3 2020-7.4%-3.3%-2.0%
Q2 2020+4.2%+14.9%+14.1%
Q1 2020+5.4%+7.5%+8.3%
Q4 2019-3.3%-6.6%-10.3%
Q3 2019+2.7%+5.2%+9.4%
Q2 2019-0.8%+1.2%-8.1%
Q1 2019-2.8%-3.0%-2.3%
Q4 2018-1.3%-1.2%-2.2%
Q3 2018-1.6%+0.2%+0.0%
Q2 2018+3.3%+2.4%+2.4%
Q1 2018-0.2%-0.3%+2.6%
Q4 2017-6.2%-4.9%-5.5%
Q3 2017+1.3%+3.4%+5.4%
Q2 2017-13.5%-14.1%-21.2%
Q1 2017+1.5%+4.6%-2.0%
Q4 2016+0.8%+2.5%-1.9%
Q3 2016-2.7%+2.0%+1.4%
Q2 2016+2.0%+1.0%+7.5%
Q1 2016+1.9%
Q4 2015+3.8%
Q3 2015-0.0%
Q2 2015+1.9%
Q1 2015-3.5%
Q4 2014+2.3%
Q3 2014+15.5%
Q2 2014-0.2%
Q1 2014+2.5%
Q4 2013+10.7%
Q3 2013+2.2%
Q2 2013+0.8%
Q1 2013+1.8%
Q2 2012+3.4%
Q4 2012+3.4%
Q3 2012+1.7%
Q1 2012-1.1%
Q4 2011+3.9%
Q2 2011+3.9%
Q3 2011+1.2%
Q4 2010-2.5%
Q1 2011-0.1%
Q3 2010-0.9%
Q2 2010+8.1%
Q1 2010-4.4%

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