Edarat Communication and Information Technology Co (9557.SR) Q2 2024: 9557 Sr

Executive Summary

Edarat delivered a robust QQ2 2024 performance with material topline growth and sustained profitability. Revenue reached SAR 28.01 million, up 39.3% year over year and 22.8% quarter over quarter, while gross profit rose to SAR 14.70 million, yielding a gross margin of approximately 52.5%. Operating income stood at SAR 10.58 million and net income at SAR 9.66 million, translating to an net margin near 34.5% and an EPS of SAR 3.83. The improvement in profitability was driven by a favorable services mix and disciplined operating expense management, with operating expenses of SAR 4.12 million (SG&A-inclusive), and a small amount of other expenses reducing EBITDA to SAR 11.21 million. The company’s EBITDA margin was about 40.0%, and the operating margin was 37.8%, underscoring a high-margin services approach within Edarat’s IT offerings.

Key Performance Indicators

Revenue

28.01M

QoQ: 22.81% | YoY:39.30%

Gross Profit

14.70M

52.48% margin

QoQ: 42.60% | YoY:55.22%

Operating Income

10.58M

QoQ: 65.77% | YoY:82.24%

Net Income

9.66M

QoQ: 66.79% | YoY:79.77%

EPS

3.83

QoQ: 66.52% | YoY:-41.62%

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Revenue: SAR 28,011,785; YoY +39.3%; QoQ +22.8%
Gross Profit: SAR 14,699,752; Gross Margin 52.48%; YoY +55.22%; QoQ +42.60%
Operating Income: SAR 10,580,362; Margin 37.77%; YoY +82.24%; QoQ +65.77%
Net Income: SAR 9,659,099; Net Margin 34.48%; YoY +79.77%; QoQ +66.79%
EPS: SAR 3.83; EPS Diluted: SAR 3.83; YoY -41.62%; QoQ +66.52%
EBITDA: SAR 11,210,013; EBITDA Margin ~40.02%
Cash Flow and Leverage: Net cash from operating activities SAR 3,803,567; Free cash flow SAR 2,853,802; Capital expenditure SAR -949,765; Net debt position SAR -10,929,921 (net cash); Cash at end of period SAR 12,608,318; Total debt SAR 1,678,397; Current ratio 3.68; Cash ratio 0.763.
Balance Sheet Quality: Total assets SAR 71,956,242; Total equity SAR 49,646,674; Total liabilities SAR 22,309,568; Cash and equivalents SAR 12,608,318; Receivables SAR 31,022,021; PPE net SAR 11,142,965; Current liabilities SAR 16,527,077; Long-term debt SAR 1,048,926.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	28.01M	39.30%	22.81%
Gross Profit	14.70M	55.22%	42.60%
Operating Income	10.58M	82.24%	65.77%
Net Income	9.66M	79.77%	66.79%
EPS	3.83	-41.62%	66.52%

Key Financial Ratios

currentRatio

3.68

grossProfitMargin

52.5%

operatingProfitMargin

37.8%

netProfitMargin

34.5%

returnOnAssets

13.4%

returnOnEquity

19.5%

debtEquityRatio

0.03

operatingCashFlowPerShare

$1.51

freeCashFlowPerShare

$1.13

priceToBookRatio

18.93

priceEarningsRatio

24.33

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
9557.SR Focus	52.48%	37.80%	19.50%	24.33%
9553.SR	4.88%	-4.36%	-4.52%	-18.76%
9551.SR	42.70%	24.40%	21.30%	7.29%
9548.SR	17.00%	8.62%	2.62%	16.74%
9547.SR	34.70%	27.00%	1.29%	43.33%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2025	46.78	2.77	+67.0%	View
Q1 2025	37.58	1.51	-6.9%	View
Q4 2024	58.95	5.19	+192.1%	View
Q2 2024	28.01	3.83	+39.3%	View

Edarat Communication and (9557.SR) Q2 2024 Earnings Report

Earnings Highlights

Edarat Communication and Information Technology Co (9557.SR) QQ2 2024 Results — Revenue Growth, High Margin Profile, and Strong Cash Generation in Saudi IT Services

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

Edarat Communication and (9557.SR) Q2 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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