CGM drives innovation in the third quarter while recording earnings decline with almost stable revenues

Koblenz - CompuGroup Medical, one of the world's leading e-health providers, recorded revenues of EUR 283.4 million in the third quarter of the 2024 financial year, slightly (-1 percent) below the previous year's level (PY: EUR 285.7 million), which is attributable to high one-off effects in the previous year. At EUR 70 million, one-time revenues were 16 percent below the prior year (PY: EUR 83.5 million). Recurring revenues increased by 6 percent to EUR 213.5 million (PY: EUR 202.2 million). The share of recurring revenues increased by 4 percentage points and now accounts for 75 percent of total revenues.

In the same period, adjusted EBITDA declined by 12 percent to EUR 54.9 million (PY: EUR 62.2 million). The EBITDA margin stood at 19 percent (PY: 22 percent). In addition to the decline in revenues, this is mainly due to investments in innovative products and solutions. Expenses for research and development rose year-on-year from EUR 60.0 million to EUR 62.4 million in the third quarter. CompuGroup Medical once again demonstrated its innovative capabilities by launching new solutions and modules. These include the CGM ONE telephone assistant, an AI-based co-pilot module for German medical practices, and CGM STELLA, the first cloud-based pharmacy software, also in combination with ASK STELLA, an AI-assisted module for pharmacy customers.

Adjusted earnings per share amounted to EUR 0.35 in the third quarter of 2024 (PY: EUR 0.43). Free cash flow increased by EUR 9.6 million to EUR 17.3 million compared to the prior year. Net debt amounted to EUR 777.0 million at the end of September 2024, compared to EUR 702.5 million at the end of December 2023.

In the Ambulatory Information Systems (AIS) segment, revenues in the third quarter of 2024 amounted to EUR 172.8 million, slightly above the prior year figure of EUR 171.7 million. Recurring revenues increased by 5 percent to EUR 133.0 million (PY: EUR 127.0 million). The share of recurring revenues rose from 74 percent in the same quarter of the previous year to 77 percent.

Revenues in the Hospital Information Systems (HIS) segment declined by 4 percent to EUR 76.6 million in the third quarter of 2024 (PY: EUR 79.6 million), mainly due to high one-off revenues in the same period of the previous year. Recurring revenues increased by 8 percent to EUR 56.6 million (PY: EUR 52.2 million). The share of recurring revenues in segment revenues rose from 66 percent to 74 percent.

In the Pharmacy Information Systems (PCS) segment, revenues in the third quarter of 2024 fell by 1 percent to EUR 34.0 million (PY: EUR 34.5 million), which was also primarily due to high non-recurring revenues in the previous year. Recurring revenues in the PCS segment increased by 4 percent to EUR 23.9 million (PY: EUR 23.0 million). The share of recurring revenues in segment revenues increased from 67 percent to 70 percent.

CGM had revised its guidance for the financial year 2024 on July 9 as follows: Organic revenue development (adjusted for acquisitions and currency effects) is expected to be in a range between -2 percent and 0 percent year-on-year (previously +4 % and +6 %). Adjusted EBITDA is expected to be in a range between EUR 220 million and EUR 250 million (previously EUR 270 million and EUR 310 million).

The full financial report as of September 30, 2024 is available for download at www.cgm.com/ir-publications.