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- After the first three quarters of 2024, the Ailleron Group achieved sales revenues of PLN 395 million, representing an increase of nearly 16% compared to the same period in 2023, including the results of the U.S.-based Prosoft LLC (number8) from Q2 2024.
- Reported EBITDA for the nine months of 2024 reached PLN 60.8 million, reflecting a year-on-year growth of approximately 52%, with operating profit amounting to PLN 49.3 million.
- Net profit was approximately PLN 34.5 million, including net profit for the parent company’s shareholders of about PLN 13.2 million.
- Since the beginning of 2024, the Group has seen an increase in profitability. The EBITDA margin in the third quarter of 2024 alone reached 15.7% (+6.4 pp YoY) and 15.4% for the nine months (+3.7 pp YoY). Meanwhile, the net margin from July to September stood at 6.8% (+8.2 pp YoY) and 8.7% cumulatively for the first three quarters of 2024 (+4.7 pp YoY).
- Exports accounted for 78% of revenues during the period. International sales grew to nearly PLN 306.8 million in the first three quarters of 2024, with a growth rate exceeding 22%.
- The Technology Services segment, operating within Software Mind, generated sales of PLN 343.2 million, marking a YoY growth of nearly 19%. The consolidation of Prosoft LLC from Q2 2024 significantly contributed to this performance. Operating profit reached over PLN 54.6 million, resulting in an operating margin of approximately 16%.
- The FinTech segment achieved revenues exceeding PLN 50.1 million, slightly higher than in the same period in 2023 (PLN 49.6 million). However, it recorded an operating loss of PLN 5.9 million, impacted by the agreement with Pekao SA, historical seasonality, and postponing the settlement of ongoing tenders until the end of this year.
In the first three quarters of 2024, the Ailleron Group reported an EBITDA of just over PLN 60.8 million, approximately 52% higher than the PLN 39.9 million achieved in the previous year, representing a value increase of nearly PLN 20.9 million. Other reported profitability metrics were as follows: operating profit amounted to nearly PLN 49.3 million, while net profit reached approximately PLN 34.5 million (including PLN 13.2 million attributable to the parent company’s shareholders). It reflects an over 67% improvement in operating profit compared to last year’s period and a 2.5-fold increase in net profit.
“The strong revenue performance in the third quarter demonstrated that, despite a relatively challenging market environment, we can maintain significant growth momentum and continue expanding our presence in international markets. It’s worth noting that, starting from Q2 2024, we have been consolidating the results of the U.S.-based company number8, which contributed approximately PLN 65.8 million to the Group’s revenues during this period. Of course, with exports accounting for nearly 78% of our revenues, the strengthening of the Polish zloty against foreign currencies – particularly USD and EUR – remains a notable challenge, affecting our financial structure.” – explains Tomasz Król, Member of the Management Board and CFO of Ailleron S.A.
“Looking at the level of sales expressed in foreign currencies, the Group shows a year-on-year increase in sales. Comparing the average exchange rates used for converting sales to Polish zloty from January to September 2024, we observe a clear decline in the USD/PLN exchange rate by over 6.5% (27 groszy) and a 6% decrease in the EUR/PLN rate (nearly 28 groszy). This results in a year-on-year revenue decrease of approximately PLN 19.5 million due to the currency conversion,” adds Tomasz Król.
In the third quarter of 2024, the Ailleron Group generated PLN 145.5 million in revenue, representing a 27% year-on-year increase. The high sales levels and maintained strong margins led to a doubling of EBITDA, which amounted to PLN 22.8 million (a 114% YoY increase). During this period, the Group recorded a net profit of nearly PLN 10 million, compared to a net loss of PLN 1.7 million in Q3 2023.
In the FinTech segment, the revenue achieved during the analyzed period was slightly higher than in the same period in 2023, reaching nearly PLN 50.1 million. After the first three quarters of 2024, the operating loss amounted to PLN 5.9 million.
“The results achieved in the FinTech segment were influenced, on the one hand, by the agreement signed with Pekao SA, and on the other hand, by historical seasonality and the postponement of decisions in ongoing tenders to the end of the year. It’s worth noting that we are actively working on new contracts, and the high qualifications gained from our current agreements allow us to present offers to foreign entities, mainly banks and leasing companies,“ – says Piotr Piątosa, Vice President and COO of Ailleron S.A. – “In addition to the development of our flagship solution, LiveBank24, we are carrying out several end-to-end implementations for clients in the banking sector. Developing software for these entities, as well as responding to the growing demand for AI implementations in banking systems, appears to be a significant trend that will support our business.“ – adds Piotr Piątosa.
In the dominant segment of the Group, led by Software Mind, namely the Technology Services segment, sales from January to September 2024 amounted to approximately PLN 343.2 million, representing a year-on-year increase of nearly 19%. The main factors influencing revenue levels were the positive effect of consolidating number8 (starting from Q2 2024) and the negative impact of exchange rates, which led to lower year-on-year revenues denominated in Polish zloty. As a result, operating profit amounted to just over PLN 54.6 million, meaning that Technology Services achieved an operating margin of approximately 16%.
“Software Mind has built its reputation by helping clients accelerate software development and more efficiently bring cloud-based solutions to market, leveraging artificial intelligence, machine learning, and data science capabilities. We see that the startup sector and dynamic companies are entering a new, revitalized phase, and corporate clients recognize the need to digitize processes. For most companies, we are their first choice,“ – says Grzegorz Młynarczyk, President of Software Mind and Vice President of Ailleron S.A. – “Our ambitious growth plan is driving Software Mind to acquire software houses in the CEE and LATAM regions, which allows us to adjust our scale of operations to meet the growth of our clients by expanding the pool of top talents in a nearshore model.“ – explains Grzegorz Młynarczyk.
Export sales continue to dominate within the Ailleron Group, showing an increasing growth dynamic. This trend has been consistently maintained over recent years. Export sales grew to nearly PLN 306.8 million from January to September 2024, achieving a year-on-year growth rate of over 22% (a nominal increase of PLN 55.2 million).
“Global digital transformation is accelerating across many sectors, such as banking, healthcare, education, and industry. Companies are increasingly investing in cloud technologies, artificial intelligence (AI), machine learning (ML), and business process automation to enhance efficiency and reduce operational costs. According to Gartner’s forecasts, global IT spending in 2024 could grow by over 8%, driven by digitalization and innovation,“ – adds Grzegorz Młynarczyk.
Ailleron SA is a capital group listed on the Warsaw Stock Exchange. Its subsidiary, Software Mind, provides software development services to innovative companies from Western Europe and the United States (including from Silicon Valley) and – under the Amplitiv brand – to the telecommunications industry. Software Mind is developed jointly with Enterprise Investors – one of the largest private equity funds in Central and Eastern Europe. Ailleron focuses on comprehensive software development services for banks, leasing companies, FinTech, and other organizations, mainly in the financial industry in Europe and Southeast Asia. It creates innovative IT solutions based on cloud technology and artificial intelligence. Ailleron’s clients include banks such as CitiBank, ING, Santander, BNP Paribas, Standard Chartered, and Credit Agricole. With a global reach spanning over 40 countries, the Ailleron Group serves more than 200 clients and employs a strong team of over 1,800 specialists. International markets contribute to a remarkable 75% of the Group’s revenue, demonstrating its truly global impact.
