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Magic Software Enterprises(MGIC) - 2024 Q4 - Annual Report
MGICMagic Software Enterprises(MGIC)2025-03-11 12:16

Financial Performance - Revenues for Q4 2024 increased by 13.6% to 142.6millioncomparedto142.6 million compared to 125.5 million in Q4 2023[2] - Operating income for Q4 2024 rose by 28.6% to 16.7million,upfrom16.7 million, up from 13.0 million in the same period last year[3] - Net income attributable to shareholders for Q4 2024 increased by 25.2% to 10.6million,or10.6 million, or 0.22 per diluted share, compared to 8.5million,or8.5 million, or 0.17 per diluted share, in Q4 2023[3] - For the full year 2024, revenues increased by 3.3% to 552.5millioncomparedto552.5 million compared to 535.1 million in 2023[4] - Net income for 2024 was 43,291,000,a1.8643,291,000, a 1.86% increase from 42,502,000 in 2023[30] Cash Flow and Assets - Cash flow from operating activities for the year ended December 31, 2024, amounted to 74.7million,upfrom74.7 million, up from 69.0 million in 2023[9] - As of December 31, 2024, Magic's cash, cash equivalents, and short bank deposits amounted to 112.8million[9]−Totalcurrentassetsincreasedto112.8 million[9] - Total current assets increased to 276,199 thousand in Q4 2024, compared to 256,625thousandinQ42023[29]−TotalassetsasofDecember31,2024,were256,625 thousand in Q4 2023[29] - Total assets as of December 31, 2024, were 540,331 thousand, up from 522,406thousandin2023[29]−Cashandcashequivalentsattheendoftheperiodroseto522,406 thousand in 2023[29] - Cash and cash equivalents at the end of the period rose to 112,779,000, compared to 105,943,000atthebeginningoftheperiod[30]DividendsandShareholderReturns−Theboarddeclaredasemi−annualcashdividendof32.7centspershare,totalingapproximately105,943,000 at the beginning of the period[30] Dividends and Shareholder Returns - The board declared a semi-annual cash dividend of 32.7 cents per share, totaling approximately 16.1 million for the second half of 2024[6] - Dividend paid to Magic's shareholders was 10,016,000,downfrom10,016,000, down from 30,798,000 in 2023[30] Strategic Initiatives - The company announced a strategic merger with Matrix I.T, which is expected to create a combined entity with a market value of 2.1billion[11]−Thecombinedentityisprojectedtooperateinapproximately50countriesandservearound6,000activeclients[12]GuidanceandProjections−MagicSoftwareisproviding2025annualrevenueguidanceofbetween2.1 billion[11] - The combined entity is projected to operate in approximately 50 countries and serve around 6,000 active clients[12] Guidance and Projections - Magic Software is providing 2025 annual revenue guidance of between 593 million and 603million,reflectinganannualgrowthof7.3603 million, reflecting an annual growth of 7.3% to 9.1% compared to the prior year[9] Expenses and Financial Health - Research and development expenses for Q4 2024 were 3,988 thousand, up from 2,703thousandinQ42023,indicatingafocusoninnovation[26]−Totalequityincreasedto2,703 thousand in Q4 2023, indicating a focus on innovation[26] - Total equity increased to 301,069 thousand in Q4 2024, compared to 290,944thousandinQ42023,reflectingstrongfinancialhealth[29]−Non−GAAPnetincomeattributabletoMagic′sshareholdersfortheyear2024was290,944 thousand in Q4 2023, reflecting strong financial health[29] - Non-GAAP net income attributable to Magic's shareholders for the year 2024 was 45,650 thousand, down from 48,405thousandin2023[27]OtherFinancialMetrics−GrossprofitforQ42024was48,405 thousand in 2023[27] Other Financial Metrics - Gross profit for Q4 2024 was 43,219 thousand, representing a gross margin of 30.3%, compared to 30.8% in Q4 2023[28] - Operating income for Q4 2024 increased to 18,753thousand,withanoperatingmarginof13.218,753 thousand, with an operating margin of 13.2%, up from 14.1% in Q4 2023[28] - Net income attributable to Magic's shareholders for Q4 2024 was 11,540 thousand, accounting for 8.1% of revenues, compared to 9.2% in Q4 2023[28] - Basic and diluted earnings per share for Q4 2024 were 0.24,unchangedfromQ42023[28]ChangesinCashFlowActivities−Paymentsforbusinessacquisitionsnetofcashacquiredtotaled0.24, unchanged from Q4 2023[28] Changes in Cash Flow Activities - Payments for business acquisitions net of cash acquired totaled 12,507,000, a decrease from 14,244,000in2023[30]−Netcashusedininvestingactivitiesdecreasedto14,244,000 in 2023[30] - Net cash used in investing activities decreased to 22,409,000 from 27,616,000inthepreviousyear[30]−Repaymentoflong−termloansfrombanksandothersincreasedto27,616,000 in the previous year[30] - Repayment of long-term loans from banks and others increased to 33,695,000, compared to 20,994,000inthepreviousyear[30]−Increaseincashandcashequivalentsfortheperiodwas20,994,000 in the previous year[30] - Increase in cash and cash equivalents for the period was 6,836,000, down from 22,881,000in2023[30]−Tradereceivablessawadecreaseof22,881,000 in 2023[30] - Trade receivables saw a decrease of 4,339,000, contrasting with an increase of 18,426,000inthepreviousyear[30]−Deferredrevenuesincreasedto18,426,000 in the previous year[30] - Deferred revenues increased to 7,609,000, compared to $3,779,000 in 2023[30]