Romanian tech group AROBS closes 2024 with a turnover of RON 412 mln and a net profit of RON 22 mln

AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, posts solid preliminary results for 2024 – a consolidated turnover of RON 412 million (EUR 83 mln), 2% above the revenue and expense budget revised in Q3 2024, EBITDA of RON 60 million (EUR 12 mln), +11% compared to the revised budget, and a net profit of RON 22 million (EUR 4.4 mln), exceeding the revised budget by 21%, a consistent performance in a year marked by economic and market challenges for technology companies.

"For AROBS, 2024 was a year of challenges to overcome and opportunities for consolidation and strategic expansion in areas where we had a limited presence. Financially, we revised our budget in November 2024 in response to changing market conditions. In Q4 2024, we recorded our strongest results of the year, achieving the highest quarterly turnover of 2024, surpassing the turnover from Q4 2023. Additionally, in Q4 2024, EBITDA increased by 12% compared to Q3 2024 and by 4% compared to Q4 2023. These results reflect our focus on cost optimization, operational efficiency, and exploring new business opportunities and high-growth potential markets. I want to thank my colleagues for their professionalism and dedication throughout this challenging year, our partners for their strong collaboration, and our shareholders for their trust. With a clear strategy and a strong team, we are ready to navigate industry challenges and seize new growth opportunities," stated Voicu Oprean, founder and CEO of AROBS.

Regarding the performance of the group’s business segments, the "Software Services" segment generated revenues of RON 325 million in 2024, representing 79% of the total turnover. Revenues from the second business segment, "Software Products," grew by 14% compared to 2023, reaching RON 81 million in 2024, accounting for 19% of total turnover. This growth highlights the importance of AROBS' diversified business model, which is structured across three business lines.

The “Integrated Systems” segment, represented by AROBS Systems, recorded revenues of RON 7 million but remained affected by the postponement of several digitalization projects in which the company was involved. This was one of the main factors contributing to the overall decline in turnover in 2024. However, the company sees significant growth potential in this segment and anticipates that contract awarding decisions for the remaining projects where AROBS has been selected will take place in the first half of this year.

"In a landscape marked by both challenges and opportunities, we adopted a prudent yet agile strategy, focusing on operational efficiency, cost optimization, and maintaining sustainable profitability. At the group level, we implemented measures to adjust cost structures and streamline internal processes to strengthen our competitiveness. Additionally, we exercised strict resource control, including careful management of recruitment and salary structures, to ensure a balance between business growth and long-term financial prudence. We will continue to adapt to market dynamics and focus on efficiency to make the most of emerging opportunities,"