Sectra's nine-month interim report 2024/2025: The industry's most satisfied customers for the twelfth consecutive year

LINKÖPING, Sweden, March 14, 2025 /PRNewswire/ -- International medical imaging IT and cybersecurity company Sectra's (STO: SECT B) enterprise imaging module for radiology is ranked number one by users around the world. We also have the most satisfied customers in digital pathology. Our commitment to customer satisfaction is the foundation of our success in all operating areas. The operating profit trend for the Group is positive despite the ongoing transition to service sales. A settlement was also reached in the third quarter regarding Sectra's patented technology for secure communication, which had a positive non-recurring effect on the Group's financial outcomes.

Third quarter: November–January in figures

• Contracted order bookings decreased 47.8% to SEK 967.6 million (1,853.6), of which SEK 710.8 million (1,652.5) pertained to guaranteed order bookings. Of the guaranteed order bookings, 19% were recognized as revenue during the quarter and a further 34–44% are deemed to pertain to revenue within 12 months after the end of the quarter.
• Net sales increased 22.2% to SEK 848.4 million (694.0). Based on unadjusted exchange rates, the increase was 18.8%. Recurring revenue accounted for SEK 525.8 million (434.7) of net sales, up 21.0%. Based on unadjusted exchange rates, the increase was 17.3%. Cloud recurring revenue (CRR) increased 57.8% to SEK 162.8 million (103.2).
• Operating profit amounted to SEK 314.7 million, of which SEK 110.0 million pertained to positive effects from a patent settlement. In terms of comparable outcomes for underlying operations, operating profit increased 175.1% to SEK 204.7 million (74.4), corresponding to an operating margin of 24.1% (10.7). Based on unadjusted exchange rates, operating profit increased 164.9%.
• Profit for the period amounted to SEK 264.0 million (57.8).
• Cash flow from operations amounted to SEK 580.7 million (233.2).

Nine-month period: May 2024–January 2025

• Contracted order bookings rose 9.0% to SEK 5,805.7 million (5,326.5), of which SEK 5,270.9 million (2,457.0) pertained to guaranteed order bookings.
• Net sales increased 12.6% to SEK 2,325.7 million (2,065.5). Based on unadjusted exchange rates, the increase was 12.5%. Recurring revenue accounted for SEK 1,492.8 million (1,261.5) of net sales, up 18.3%. Based on unadjusted exchange rates, the increase was 18.1%. Cloud recurring revenue (CRR) increased 43.8% to SEK 407.0 million (283.1).
• Operating profit amounted to SEK 524.1 million, including the positive effects of a patent settlement during the third quarter. In terms of comparable outcomes for underlying operations, operating profit increased 29.2% to SEK 414.1 million (320.4), corresponding to an operating margin of 17.8% (15.5). Based on unadjusted exchange rates, operating profit increased 28.7%.
• Profit for the period amounted to SEK 432.2 million (269.9).
• Cash flow from operations amounted to SEK 700.0 million (192.6).

Comments from Torbjörn Kronander, President and CEO of Sectra AB
"Customer satisfaction is about much more than the products and services we offer—not the least, it is about our corporate culture. We all realize how essential effective IT support is for the important work our customers do for patients and society. This insight inspires us to care a little more. Our consistent top ranking in customer satisfaction, even during our comprehensive transition to delivering medical diagnostic imaging as a service via the cloud, is proof of the strength of Sectra's culture. Satisfied customers and good cost control lead to a positive long-term performance.

"With the very large projects we are carrying out, these negative effects will continue into the next fiscal year, putting pressure on our operating margin and sales before our new major customers start using our services in the volumes planned. While the change is having a short-term dampening effect on our financial performance, it will be highly beneficial in the long term—for us and for our customers.

"Our success in medicine continues in North America. The US and Canada are the countries where we have made the most progress when it comes to the ongoing transition to cloud-based services—nearly all our new sales in the US and Canada are currently cloud-based SaaS deliveries. The transition to service sales has dampened our growth for several years now, but we expect to see the positive effects outweigh the negative ones within one to two years. We are also seeing this change in other markets, although not as strongly as in North America."

Read the attached interim report for further CEO comments and information.

Presentation of the interim report 
Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.

Time: March 14, 10:00 a.m. CET
Follow live or listen to the recording afterward: https://investor.sectra.com/q3report2425

This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 8:15 a.m. (CET) on March 14, 2025.

For further information, please contact:
Dr. Torbjörn Kronander, President and CEO, Sectra AB, +46 (0) 705 23 52 27

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