CEO's review

Financial Statement Bulletin 2024, 25.2.2025

2024 was Digia’s ninth consecutive year of profitable growth. We achieved year-on-year growth in both our net sales and operating profit (EBITA) in each quarter of the year. Net sales and operating profit (EBITA) hit an all-time high in the fourth quarter.

Considering the market situation, I’m very satisfied with our performance in the last quarter. Our net sales saw organic growth of 2.6 per cent, and our operating profit (EBITA) was up by 15.2 per cent. In the fourth quarter, the market for the IT services business was on a cautious, wait-and-see footing, which was reflected in demand volume. Furthermore, customers reviewed new investment decisions carefully, and in some cases put these on hold until a later date. On the other hand, customers centralised their procurements in the hands of providers with a broad offering, which again supported Digia’s strong performance during the quarter. Digia’s continuing service and maintenance business accounted for 48.4 per cent of net sales in the fourth quarter. Extensive continuing services provide stability to the business and support the strategy of sustainable growth. Outperforming the general market trends, Digia achieved organic growth and improved its profitability.

Our full-year net sales grew by 7.1 per cent to EUR 205.7 (192.1) million. Of this, full-year organic growth was at 3.1 per cent. In the last quarter, our net sales amounted to EUR 54.5 (53.2) million and all of the growth was organic.

Our full-year operating profit (EBITA) was EUR 21.2 (16.7) million, including EUR 1.6 (0.6) million in expenses with no cash flow impact related to changes in the fair value of acquisitions. EBITA margin was 10.3 (8.7) per cent. Fourth-quarter operating profit (EBITA) was EUR 5.8 (5.1) million with an EBITA margin of 10.7 (9.6) per cent.

With respect to the growth figures for the fourth quarter, I’m especially pleased that Digital Experience, our business focusing on modern software development, continued to see growth of 18 per cent. The Digital Experience business comprehensively integrates customer experience, design, and technology into Digia's business solutions. The high calibre of our expertise was evident in our new partnerships and deeper customer relationships, such as with the Finnish Ice Hockey Association, the State Treasury and the Finnish Tax Administration.

In addition, the trust that our customers have in us was broadly visible in our business operations. In October-December, we made new partnership agreements with companies such as ARE, DigiFinland, Skandinaviska Enskilda Banken (SEB) and Broman Group. We also took an important step forward in expanding our partnership with a major financial operator.

In 2024, our customers’ interest in harnessing AI increased significantly. This is the beginning of a transformational change. Digia’s approach to AI is to integrate it into the customer’s business processes. We utilize AI automation and generative artificial intelligence as well as new agent solutions, for example, as part of Microsoft business solutions. The business benefits of AI are realised in production solutions, and not just in trials and POCs. For example, the Digia Dolphin platform meets this need. In the last quarter of the year, Digia Dolphin already saw significant monthly recurring volumes from a business perspective.

We continuously invest in the development and growth of our personnel. Our number of employees grew by 18 during the last quarter and was up 49 in the full year in relation to the comparison period. We also launched a major recruitment campaign in December with the aim of hiring 75 new IT professionals.

We are releasing information on our sustainability in 2024 in the Group’s Sustainability Statement as part of the Board of Directors’ Report. We see the green transition as a business opportunity. For example, we are on board as a partner in the implementation of the Animal Welfare Verification System project which is being carried out jointly by Natural Resources Institute Finland (Luke) and food industry actors as part of the nationwide Food 2.0 Veturi project led by Valio.

2024 was the second year in our three-year strategy period. Our “Unlock Your Intelligence” strategy aims for sustainable profitable growth. We achieve this by providing our customers with intelligent solutions as a genuine business partner. One of our objectives is to increase the share of Digia’s total net sales accounted for by international operations to 15 per cent by the end of 2025. International operations represented 11.8 per cent of net sales in 2024. We also made progress in our sustainability objectives. Compared to 2022, Digia’s customer net promoter score (NPS) rose by 18 per cent and its employee net promoter score (eNPS) by 60 per cent. By the end of 2024, our carbon footprint had reduced by 40 per cent compared to the 2019 baseline.

Although delays in decision-making and IT project launches may be felt as a slower start to the year, our aim for 2025 is to achieve profitable growth for the tenth consecutive year in line with our strategy. We make growth investments in sales and service productization as well as international business. Regarding our own operations, we invest in and deepen the "symbiosis between people and software" within the organization, bringing the benefits of artificial intelligence to enhance everyday operations. As a company, Digia is in a strong position heading into 2025.

I would like to thank all of Digia’s personnel, customers, shareholders and partners for 2024, a year of sustainable growth!