Global digital solutions provider Tecnotree has posted a positive third-quarter financial performance, driven by strategic growth in profitable markets and a focused approach to operational efficiency. The Helsinki-based company, known for its advanced AI, 5G, and cloud-native technologies, reported a second consecutive quarter of positive free cash flow, along with significant revenue growth in North America and Europe.
Tecnotree recorded positive free cash flow of €1.7 million for Q3 2024, an improvement from a loss of €7.9 million during the same period last year. Additionally, foreign exchange gains reached €0.3 million, up from a loss of €1.9 million previously. Net income rose to €4.1 million from €3.2 million, while gross cash inflow from operating activities surged by 358% to €5.5 million year-on-year. Earnings per share also saw notable improvement at €0.24, partly attributed to a recent share consolidation, or reverse split, executed in April 2024.
Padma Ravichander, CEO of Tecnotree, commented on the strong quarterly results, highlighting the company’s ongoing strategy to pivot toward more cash-generating services. “Our Q3 2024 performance reflects our focus on operational efficiency and optimising revenue sources,” Ravichander said. “Revenue for the quarter stood at €19.0 million, with a constant currency revenue of €20.2 million. Our growth in North America and Europe has been particularly encouraging, with these markets now contributing 22% of our revenue, up from 17% last year. Our annual recurring revenue (ARR) has also increased by 7%, underscoring the demand for our product offerings in established markets.”
Operational efficiency was another focus for Tecnotree during the quarter, with a reported 10% reduction in operational expenditure, supporting their goal of long-term profitability. The company’s order book at the end of the quarter reached €75.1 million, down slightly from €78 million, as it seeks to streamline costs and improve working capital.
Tecnotree’s efforts have not gone unrecognised. The company was highlighted by Gartner and IDC, both respected technology analysts, for its work in customer journey solutions such as configure, price, quote (CPQ) and partner ecosystem monetisation. In addition, Precision Reports listed Tecnotree as a major player in billing and revenue management for the second consecutive year.
Among other Q3 highlights, Tecnotree Moments launched a generative AI-driven social commerce agent in collaboration with a major telecommunications provider in the Middle East and Africa region. The solution, which enables real-time customer interactions, has garnered Tecnotree a nomination for “Vendor of the Year” alongside a major telecom group in Latin America.
Looking ahead to Q4 2024 and beyond, Tecnotree’s priorities include further expansion in North American and European markets, cost efficiency, and a continued focus on generating positive cash flow. As the company continues to refine its financial and operational structure, it remains committed to maintaining recent cash flow trends as outlined in previous guidance.
With a strong start to the second half of 2024, Tecnotree aims to capitalise on these achievements to drive further value in its core markets, positioning itself as a key player in the global digital transformation landscape. For more information, please visit our website www.tecnotree.com