Moving forward with a slightly more moderate recommendation, which is understandable given the development in the number of experts and the share price decline of peers.
In my opinion, Witted is not quite as much in the line of fire regarding AI disruption compared to other IT service firms, because they have historically provided more capable senior talent, for whom there should be continued demand in the future. Otherwise, the takeaway from yesterday’s webcast and interview left me with the feeling that we perhaps shouldn’t expect very strong growth this year, but all the more improvement in profitability.
And right after, the January figures, which met Franco’s expectations for revenue but exceeded them by more than two in expert numbers:
A positive highlight is the strength of new sales:
Our market outlook remains cautiously positive. International demand is stronger than domestic, and the private sector continues to be stronger than the public sector. Our new sales have continued clearly stronger than in the comparison period.
Indeed, here is a quick take on the January figures, which I added to the front page of the report on Inderes.fi. An interesting year ahead for sure.
January figures were slightly better than our updated expectations
Witted’s expert count in January fell to 359 (forecast 357) and revenue was in line with our 4.7 MEUR forecast. Consequently, we believe our forecast for the current year is well in line with these figures, or perhaps slightly on the cautious side, considering the company’s improved trend. Organically, revenue decreased by 0.4% compared to the comparison period, but there was also one fewer working day. Revenue grew by 9.6% adjusted for working days and by 4.5% organically adjusted for working days. Sales comments continued in line with Q4.
