Litium: Potential for ARR growth acceleration in H2'25 - ABG
Bildkälla: Stockfoto

Litium: Potential for ARR growth acceleration in H2'25 - ABG

Minor estimate changes
Record-level client intake & variable intake growth
EV/ARR 2x, '25e EV/EBITDA ~8x


Q1 slightly below expectations

The Q1 report came in just short of our expectations. We note that ARR growth was marginally lower than expected, with variable revenues driving most of the growth. Given the record-high level of new customer intake that the company alluded to in connection with the Q1 report, we expect the potential for a slight re-acceleration of the growth rate in H2. In terms of profitability, the quarter was somewhat impacted by the CEO transition.
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