• Subscription revenue up 6.6% to €69.9m, now 52.5% of total revenue
• EBITDA margin improved to 15.2%, up from 7.6% in CY23
• Gross profit margin increased to 75.4%, up from 70.8% in CY23

FINEOS Corporation Holdings Plc reported its FY24 results, highlighting continued progress in its transition to a higher-quality subscription-based business model. Total revenue grew 6.9% to €133.2m, driven by a 6.6% increase in subscription revenue to €69.9m, which now represents 52.5% of total revenue. The company's EBITDA margin improved significantly to 15.2%, up from 7.6% in CY23, while gross profit margin increased to 75.4% from 70.8% in the prior year. FINEOS ended the year with a strong cash position of €19.8m and no debt. Key operational highlights included the launch of FINEOS Absence for Employers, the completion of the FINEOS New Business & Underwriting product rewrite, and important customer success milestones for the FINEOS Platform for Employee Benefits. The company continued to see strong growth in its North American business, with cloud subscription revenue in the region up 21.3%. FINEOS also made progress in improving its cost efficiency, with a focus on hiring in lower-cost regions and reducing contractor costs. Looking ahead, the company provided guidance for FY25, targeting revenue in the range of €138m to €143m and continued positive free cash flow.

FY25 (1 January - 31 December) revenue to be in the range €138m - €143m. The company expects to achieve positive free cash flow in FY25 and be cash generative thereafter.

FINEOS expects subscription fees to increase as a percentage of total revenues to 65% in FY27 and 75% in FY29, R&D investment to decrease as a percentage of total revenue to 30% in FY27 and 25% in FY29, gross margin to increase to 75% in FY27 and 80% in FY29, and EBITDA to increase to 25% in FY27 and 40% in FY29.