Q3 tulos ulkona, ainakin pikaisella vilkaisulla mentiin yli Jonin liikevaihtoennusteista, ennuste 14,1% ja toteutunut 20,8%. Liiketulos ja käyttökate taas vähän enemmän pakkasella kuin ennustettu, ennuste käyttökate -0,8 ja toteuma -0,9. Positiivisesti myyntimix etenee kuitenkin oikeaan suuntaan, jatkuvaveloitteiset haukkaavat suuremman osan liikevaihdosta ja asiantuntijapalvelut vähemmän. Omaan silmääni ihan positiivissävytteinen rapsa, en tiedä toki miten markkina tykkää tässä ympäristössä siitä että kannattavuus oli pahemmin pakkasella kuin odotukset vaikka liikevaihdossa mentiinkin yli.
1 Like
@Joni_Gronqvist haastatteli toimitusjohtaja Mika Vainio-Mattilaa Q3:sta ja kansainvälistymisestä. 
Aiheet:
00:00 Aloitus
00:19 Q3:n pääkohdat
01:43 Kansainvälisten liiketoimintojen kehitys
03:00 Outsmart-alustan kehitystyö ja kaupallistaminen
07:02 Eclair-yritysoston integraation eteneminen
08:28 Kannattavuuden tehostamistoimenpiteet
09:59 Epävarman talousympäristön vaikutukset
12:11 Kilpailukentän muutokset
3 Likes
@Joni_Gronqvist on tehnyt yhtiöraportin Digital Workforcesta.
Digital Workforce raportoi torstaina isossa kuvassa ennusteidemme kanssa linjassa olleen Q3-liiketoimintakatsauksen. Liikevaihdon kasvua ajoi edelleen strategisesti tärkeät jatkuvaveloitteiset palvelut. Kasvu on ollut vauhdikasta yhtiölle tärkeillä kasvumarkkinoilla UK:ssa ja Yhdysvalloissa koko vuoden. Erityisen positiivista oli kuitenkin yhtiön tehostamistoimien voimakkaat vaikutukset, joka nopeuttaa selvästi yhtiön kannattavaksi nousemista. Tämän pohjalta olemme tehneet etenkin lähivuosien tulosennusteisiimme selviä tarkennuksia ylös. Osakkeen arvostus on näkemyksemme mukaan hyvin houkutteleva useasta näkökulmasta katsottuna (EV/S 0,7x, SOTP 4,7 ja DCF 7,1), erityisesti kannattavuuskäänne huomioiden.
https://www.inderes.fi/fi/odotettua-nopeampi-kannattavuusparannus-luvassa
Tässä olisi vielä aamarikommentti Digital Workforcesta, joka on kaikkien luettavissa.
Nostamme Digital Workforcen suosituksen osta-tasolle (aik. lisää) ja toistamme 4,5 euron tavoitehinnan heijastellen nousseita ennusteita ja tuottovaatimusta. Digital Workforce raportoi torstaina isossa kuvassa ennusteidemme kanssa linjassa olleen Q3-liiketoimintakatsauksen. Liikevaihdon kasvua ajoi edelleen strategisesti tärkeät jatkuvaveloitteiset palvelut. Kasvu on ollut vauhdikasta yhtiölle tärkeillä kasvumarkkinoilla UK:ssa ja Yhdysvalloissa koko vuoden. Erityisen positiivista oli kuitenkin yhtiön tehostamistoimien voimakkaat vaikutukset, joka nopeuttaa selvästi yhtiön kannattavaksi nousemista. Tämän pohjalta olemme tehneet etenkin lähivuosien tulosennusteisiimme selviä tarkennuksia ylös. Osakkeen arvostus on näkemyksemme mukaan hyvin houkutteleva useasta näkökulmasta katsottuna (EV/S 0,7x, SOTP 4,7 ja DCF 7,1), erityisesti kannattavuuskäänne huomioiden. Katso yhtiön toimitusjohtajan videohaastattelu tästä. Toukokuussa julkaistu, mutta edelleen ajankohtainen seurannan aloitusraportti yhtiöstä on luettavissa tästä.
3 Likes
The CEO “leaves” their position immediately.
7 Likes
Here is a story about the new CEO. 
Digital Workforce announced yesterday that Jussi Vasama, M.Sc. (Tech.), has been appointed as the new CEO. Vasama has extensive experience in leading international software and service businesses. Vasama is currently the CEO of the software and service company QPR Software Plc, and before that, he held several business leadership positions at Basware.
3 Likes
Why is there so little discussion about Digital Workforce? It’s quite an interesting company that provides so-called digital robots to streamline business operations and handle tedious tasks.
5 Likes
The company isn’t making money, it isn’t growing fast, the service they sell is quite generic, and the new CEO’s track record consists of being at the helm of two peer companies that were complete failures from an investor’s perspective. What was it you wanted to discuss? 
28 Likes
Key highlights of the financial statements bulletin below:
July–December 2022:
• Revenue was 13.5 (11.3) million euros and grew by 19.7%.
• EBITDA was -0.2 (-0.7) million euros and adjusted EBITDA was 0.5 (-0.3) million euros.
• Operating profit (EBIT) was -0.9 (-0.8) million euros.
• Revenue from continuous services was 7.8 (6.1) million euros and grew by 29.2%. The share of revenue rose to 58.1% (53.8%).
• Professional services revenue was 5.7 (5.2) million euros and grew by 8.7%. The share of revenue was 41.9% (46.2%).
• Fourth-quarter adjusted EBITDA was 13.9% (-3.3%) of revenue.
January–December 2022:
• Revenue was 25.5 (22.4) million euros and grew by 13.9%.
• EBITDA was -1.8 (-1.0) million euros and adjusted EBITDA was -0.9 (-0.6) million euros.
• Operating profit (EBIT) was -2.6 (-1.2) million euros.
• Revenue from continuous services was 15.0 (11.7) million euros and grew by 28.6%. The share of revenue rose to 58.9% (52.1%).
• Professional services revenue was 10.5 (10.7) million euros and decreased by 2.1%. The share of revenue was 41.1% (47.9%).
• Earnings per share (EPS) was -0.27 (-0.62) euros.
• The company announced an updated strategy – the new Digital Workforce Outsmart process framework, aimed at automating customer business processes, and the related technology platform to accelerate business growth.
• Cooperation agreement with the Swiss company Flowable to further develop the Outsmart platform.
• Business Finland granted the company 1.37 million euros in support for research and development to further develop the Outsmart platform for the period March 4, 2022 – February 28, 2023.
• Several contracts with public healthcare organizations (NHS) in the UK.
3
• New Roboshore cloud service agreements across several different industries in the USA.
• On July 7, 2022, Digital Workforce Services received an order for professional services worth 1.5 million euros from a large energy company in the USA, to be delivered by the end of 2022.
• On July 17, 2022, Digital Workforce Services signed an agreement to acquire Eclair Group Limited (Ireland).
• On December 19, it was announced that CEO and founding partner Mika Vainio-Mattila would step down from his position as CEO.
• On December 20, it was announced that Jussi Vasama (M.Sc. Tech) has been appointed as the company’s new CEO. He will start in his position at Digital Workforce Services Plc by April 19, 2023, at the latest.
and Inderes interview
13 Likes
I noticed a relatively strong annual growth in wage costs at Digital Workforce over the last three years. Last year, wages amounted to 12.4 million euros, 11.2 million euros in 2021, and 10.4 million euros in 2020. This means that last year wages rose by 10.7%, even though the headcount increased by only two to 193 (191). Between 2020 and 2021, wages still grew at a more moderate rate of 7.6%. This kind of wage inflation raises at least some concerns for me regarding the profitability outlook, especially since it cannot be explained by an increase in headcount for growth investments. How do you see this wage development going forward, @Joni_Gronqvist? What kind of wage inflation have you factored into your forecasts regarding profitability? I didn’t set out to benchmark the wage inflation of all IT service firms for comparison last year, but at GoFore, wages rose by an average of 6.2% last year.
7 Likes
This thread is quiet!
CFO Heini Kautonen was presenting the company as an investment.
Did you notice @Joni_Gronqvist, that there is a question for you in the post above?
7 Likes
Head of Customer Operations Tuomo Sievilä has sold a fairly good-sized slice of his holding. According to the shareholder list, he held 4,500 shares on May 31st, and now 2,500 of those have been offloaded.
https://www.inderes.fi/fi/tiedotteet/digital-workforce-services-oyj-johdon-liiketoimet-sievila-0
5 Likes
2023 H1 figures are out:
“PROFITABILITY IMPROVED BY 14 PERCENTAGE POINTS
AND NET INCOME TURNED POSITIVE, REVENUE
INCREASED
January-June 2023:
• The revenue was EUR 12.6 (12.0) million, which was an increase of 5.2%.
• EBITDA was EUR 0.1 (-1.6) million and adjusted EBITDA was EUR 0.3 (-1.3) million.
• Operating profit was EUR 0.0 (-1.7) million.
• Revenue from Continuous Services was EUR 7.6 (7.1) million, which was an increase of 6.6%. The
proportion of total revenue rose to 60.5% (59.7%).
• Revenue from Professional Services was EUR 5.0 (4.8) million, which was an increase of 3.2%. The
proportion of total revenue was 39.5% (40.3%).
• Earnings per share (EPS) amounted to EUR 0.02 (-0.17).”
2 Likes
That slight growth in revenue is a bit of a disappointment.
2 Likes
But as growth accelerates again, operating leverage appears to improve even further.
3 Likes
The tide has turned. I personally prefer slower profitable growth over unprofitable rapid growth in this market environment. In my opinion, a good performance by the company.
4 Likes
The balance sheet is very light, and even the net result was positive.
This is very much a growth company, however. Their focus is particularly on scalability (headcount has decreased from a year ago and remained under control).
2 Likes
Yeah, getting into positive territory is certainly a good achievement. Let’s hope growth continues a bit better for the rest of the year and next year. 
1 Like
Joni has written a new company report. 
Digital Workforce’s revenue growth fell clearly short of expectations in H1, weighed down by mature markets. However, the earnings level was in line with expectations. The company is now focusing primarily on profitability, which is logical in the current uncertain market environment. In the current market environment, we expect more moderate but profitable growth in the coming years. In our view, the stock’s valuation is attractive from several perspectives (2024e EV/S 1.1x, EV/EBIT 15x, and DCF 6.7), especially considering the ongoing profitability turnaround.
2 Likes
Puolustusvoimien kanssa sopimusta:
"The Finnish Defense Forces have entered into an automation services agreement with Digital Workforce, valued at 1.2M euros
6.10.2023 08:00:00 Digital Workforce Services Oyj
Press Release 6 October 2023
The Finnish Defense Forces have entered into an automation services agreement with Digital Workforce, valued at 1.2M euros.
The Finnish Defense Forces have inked a deal with Digital Workforce for automation services. This contract encompasses RPA and Artificial Intelligence solutions along with related professional services. The estimated worth of this procurement stands around 1.2M euros for the entire contract duration, which spans up to three years. The collaboration between Digital Workforce and the Defense Forces commenced in 2017.
The Defense Forces are persistently aiming to automate service production processes and operations, a significant portion of which involves routine manual work on information systems. RPA can dramatically enhance performance and reallocate resources towards more strategic tasks.
Furthermore, the Defense Forces are endeavoring to broaden the range of automation across organizational units and are gearing up to automate the first end-to-end operational processes.
The Defense Forces place substantial emphasis on the security and reliability of solutions under all circumstances.
In-house experts from the Defense Forces are collaborating closely with Digital Workforce to design and implement the organization’s automation solutions."
12 Likes
Profit warning: Sisäpiiritieto, Tulosvaroitus: Digital Workforce Services Oyj alentaa ohjeistustaan vuoden 2023 liikevaihdosta | Kauppalehti
"Updated guidance for 2023
Digital Workforce’s full-year 2023 revenue is estimated to be 24-25 million euros and profitability in terms of adjusted EBITDA is expected to be positive."
Inderes’ revenue forecast was 26 million. It wasn’t exactly an earth-shattering announcement, considering last year’s revenue was 25.5 million and they won’t even reach that this year.
10 Likes