Q2 2024 - Topicus.com
Superb cash flow generation, but M&A growth lagging behind
Cash Flow Star
Yesterday, Topicus.com (or TOI) announced its Q2 2024 results. We wrote quite a bit on Topicus already, including the January deep dive, the FY23 results summary, the special dividend announcement, and the Q1 discussion.
Headline Numbers
Turning to the headline numbers before we jump into some more details and our updated valuation model.
Revenue for the whole group increased by 14% year-over-year, driven by 4% organic growth and 8% organic growth in maintenance and other recurring revenues. Revenues for Topicus Coop excl. companies with minority shareholders rose 14%.
Completed acquisitions (incl. acquired cash) worth 16.6m EUR of which 6.3m EUR in deferred payments. Acquisitions yet to be finalized during or after Q3 for a total consideration of 53.7m EUR.
Cash from ops turned positive to 8.8m EUR driven by smaller working capital outflows and good EBITA growth. This is a surprisingly strong result, as usually we see a bit of a cash flow reversal after Q1.