Executive Summary
Edarat Communication and Information Technology Co (9557.SR) reported a standout QQ4 2024, with revenue of SAR 58.95 million, up 192.1% year-over-year and 110.4% quarter-over-quarter. The quarterly performance features strong profitability alongside meaningful operating leverage: gross profit of SAR 24.40 million for a gross margin of 41.39%, and operating income of SAR 14.83 million for an operating margin of 25.15%. Net income reached SAR 13.08 million, delivering a net margin of 22.19% and an EPS of SAR 5.19. EBITDA stood at SAR 16.92 million, yielding an EBITDA margin of approximately 28.7%.
Key Performance Indicators
QoQ: 110.44% | YoY:192.06%
QoQ: 65.99% | YoY:172.99%
QoQ: 40.15% | YoY:162.54%
QoQ: 35.42% | YoY:187.42%
QoQ: 35.51% | YoY:186.74%
Key Insights
Revenue: SAR 58.95m; YoY growth: 192.1%; QoQ growth: 110.4%. Gross Profit: SAR 24.40m; Gross Margin: 41.39%; YoY Gross Profit growth: 172.99%; QoQ: 65.99%. Operating Income: SAR 14.83m; Operating Margin: 25.15%; YoY: 162.54%; QoQ: 40.15%. Net Income: SAR 13.08m; Net Margin: 22.19%; YoY: 187.42%; QoQ: 35.42%. EPS: SAR 5.19; YoY: 186.74%; QoQ: 35.51%. EBITDA: SAR 16.92m; EBITDA Margin: ~28.70%. Operating Cash Flow: SAR 0.55m; Free Cash Flow: SAR -1.55m; Capex: SAR -2.10m; Depreciation & Amorti...
Financial Highlights
Revenue: SAR 58.95m; YoY growth: 192.1%; QoQ growth: 110.4%. Gross Profit: SAR 24.40m; Gross Margin: 41.39%; YoY Gross Profit growth: 172.99%; QoQ: 65.99%. Operating Income: SAR 14.83m; Operating Margin: 25.15%; YoY: 162.54%; QoQ: 40.15%. Net Income: SAR 13.08m; Net Margin: 22.19%; YoY: 187.42%; QoQ: 35.42%. EPS: SAR 5.19; YoY: 186.74%; QoQ: 35.51%. EBITDA: SAR 16.92m; EBITDA Margin: ~28.70%. Operating Cash Flow: SAR 0.55m; Free Cash Flow: SAR -1.55m; Capex: SAR -2.10m; Depreciation & Amortization: SAR 1.94m; Net cash provided by operating activities: SAR 0.55m; Net change in cash (end period): not disclosed in the standalone summary.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
58.95M |
192.06% |
110.44% |
| Gross Profit |
24.40M |
172.99% |
65.99% |
| Operating Income |
14.83M |
162.54% |
40.15% |
| Net Income |
13.08M |
187.42% |
35.42% |
| EPS |
5.19 |
186.74% |
35.51% |
Key Financial Ratios
operatingProfitMargin
25.2%
operatingCashFlowPerShare
$0.22
freeCashFlowPerShare
$-0.61
Management Commentary
No earnings call transcript was provided in the data. As a result, there are no management quotes or thematic highlights to summarize by strategy, operations, or market conditions. If the transcript becomes available, a thematic consolidation would cover: strategy milestones (growth beyond legacy services), operational execution (utilization, delivery efficiency), macro and market conditions (government IT spend, cloud adoption), and guidance implications.
Forward Guidance
No explicit forward guidance was issued for QQ4 2024 in the provided data. Given the macro backdrop of Saudi Arabia’s ongoing digital transformation push and Edarat’s mix of advisory, data center engineering, cloud services, and smart city initiatives, prospects appear favorable contingent on backlog visibility, project ramp timing, and receivables discipline. Investors should monitor: (1) pipeline/backlog progression and project execution cadence, (2) utilization trends and gross margin stability as scale increases, (3) working capital dynamics (notably accounts receivable days outstanding around 89 days), and (4) capex intensity versus free cash flow generation. Sensitivity to government contract timing and sector concentration could influence the continuation of the recent earnings trajectory.