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Vitec Q2 2024: Solid beat on revenues, decent margins - Redeye

Redeye provides its initial take on Vitec’s Q2 2024 report, which mostly exceeded our estimates. We judge that positives from the report include better-than-expected sales growth, especially for recurring revenues, mainly deriving from strong transaction-based recurring revenues. Notable negatives include slightly soft margins, though absolute profit figures still exceed our estimates. We will likely increase our 2024e top-line estimates and nudge up our valuation.

Redeye provides its initial take on Vitec’s Q2 2024 report, which mostly exceeded our estimates. We judge that positives from the report include better-than-expected sales growth, especially for recurring revenues, mainly deriving from strong transaction-based recurring revenues. Notable negatives include slightly soft margins, though absolute profit figures still exceed our estimates. We will likely increase our 2024e top-line estimates and nudge up our valuation.
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