Siili Solutions’ profitability continued to fall from the weak comparative period – “The market’s recovery has taken longer than expected”

A software company Hedgehog Solutions released its third quarter results on Tuesday.

Siili’s turnover fell to 24.1 million euros in July–September from 27.0 million euros in the comparison period last year. The only analysis house that follows the company Inderes predicts a turnover of 25.2 million euros.

Siili’s adjusted ebita result in the third quarter was 0.7 million euros, while the figure for the comparison period was 1.3 million euros. Inderes anticipates 1.3 million euros. The adjusted ebita percentage was 2.9.

The company contracted organically in the third quarter by 10.8 percent, while in the comparison period there was a contraction of 4.1 percent. Inderes anticipates an organic contraction of 6.7 percent.

“The general situation in the IT service market has continued to be challenging, and the recovery of the market has taken longer than expected. Customers’ decision-making to start new projects is still slow, even though customers’ activity has increased”, commented the company’s CEO Tomi Pienimäki in the bulletin.

Instructions unchanged

In September, Siili Solutions issued a negative earnings warning and now repeated it as a guideline in connection with the earnings announcement.

The company estimates the turnover for the entire year 2024 to be 106–116 million euros and the adjusted ebita result to be 4.5–6.5 million euros.

Before the September profit warning, the company had guided for a turnover of 120–140 million euros and an ebita income of 7.5–10.5 million euros.

In 2023, the company’s turnover was 122.7 million euros and the adjusted ebita result was 8.7 million euros.

“Despite the challenges of the operating environment, we believe in the normalization of the market, even though the turnaround has been delayed.”