29/2024 Trifork Group revises annual forecast for 2024 | 19.08.24

Based on the evaluation of the second quarter results and the updated forecasts of the Group’s subsidiaries, Trifork has adjusted its financial outlook for the full year:

• Revenue is expected to be in the range of EURm 215-220 (previously EURm 220-230), which equates to a growth of 3.4-5.8%. Inorganic revenue is still expected to be EURm 5.4.
• Adjusted EBITDA in the Trifork segment is expected in the range of EUR 31-34 million (previously EUR 34-38 million).
• Trifork Group’s EBIT is expected to be between EUR 14 and 17 million (previously EUR 17 to 21 million).

The weaker-than-expected development comes from the Trifork Segment. While Inspire performed in line with expectations in Q2, Build and Run performed below expectations.

At Inspire, revenue increased by 8.6% to EUR 2.4 million in the second quarter. Adjusted EBITDA amounted to EUR 0.0 million.

In Build, the business environment remained sluggish. Build Q2 revenue increased by 0.1% to EURm37.2, achieving an adjusted EBITDA margin of 13.0%.

In Run, Q2 revenue decreased by 19.2% to EURm 12.7 in Q2 (all organic) compared to the same quarter last year. The main reason for the decrease was EURm 3.2 less revenue from non-core licenses and third-party hardware. Adjusted for this, the underlying growth rate in Run’s core business (licenses & support, hosting & security) was 1.5%. The adjusted EBITDA margin was 19.2%.

Comment from CEO Jørn Larsen:
“The second quarter and the first half of 2024 have been more challenging than we anticipated at the start of the year. In private companies, we have not yet managed to grow new business to a size that compensates for the loss of revenue from orders that were postponed or terminated in Q4 and Q1. So overall, revenue for the first half of 2024 was on par with 2023. However, I am pleased to see that after a difficult start to the year in our public company in Denmark, we are now winning and delivering new business that has compensated for the reduction in scope in other orders. Our profitability is still below where it should be, but we are making progress on our strategic initiatives according to plan. These include selling more of our own software products and platforms, improving the performance of our conference business, and reorganizing our teams and delivery model in Cyber ​​Protection. While we continue to invest in business development to broaden our sales pipeline, we are also working hard to find more efficient ways to manage our costs. We will continue to pursue M&A in the current slow market environment. With all the groundbreaking work we are recognized for, I am still very positive about the medium and long-term prospects for Trifork Group, even if 2024 does not turn out as good as expected.”

Q2 Results and Presentation tomorrow, August 20
Trifork will publish the full Q2 and half-year report tomorrow, August 20, 2024, at 07:00 CEST, followed by a presentation of the results and a Q&A session at 11:00 CEST with CEO Jørn Larsen and CFO Kristian Wulf-Andersen. The live webcast can be accessed via the following link:

https://trifork.zoom.us/j/92971745032?pwd=aljGs8x2oYPefEbfpesYRVIdpc94LX.1

A recording will be made available on our investors website. More information can be found at https://investor.trifork.com/events/.

For further information please contact:

Investors
Frederik Svanholm, Group Investment Director and Head of Investor Relations
[email protected], +41 79 357 7317

Media
Peter Rørsgaard, CCO Fintech & Head of Press Relations
[email protected], +45 2042 2494

About Trifork Group
Trifork is a global pioneering technology partner for its corporate and public sector customers. The group has 1,273 employees in 74 business units in 15 countries. Trifork operates in six business areas: Digital Health, FinTech, Smart Building, Smart Enterprise, Cloud Operations and Cyber ​​​​Protection. Trifork’s research and development takes place in Trifork Labs, where Trifork continuously invests in and develops technology companies. Trifork owns and operates the software conferencing brands GOTO and YOW! and the global GOTO tech community with more than one million online subscribers and 72 million video views. Trifork Group AG is a listed company on Nasdaq Copenhagen. For more information, visit trifork.com.