EVS reports 2024 results

EVS Achieves Record Revenue for Fourth Consecutive Year in 2024, Celebrating 30 Years of Success

2024 marks a significant milestone in the history of EVS, as we achieved a new revenue record for the fourth consecutive year. We keep demonstrating our ability to achieve topline growth and strong profit performance. In 2024, we celebrated 30 years of innovation and success with customers around the world. Our PlayForward strategy continues to deliver results in line with our 2030 growth ambitions.

Full-year Highlights

• Revenue comes in at EUR 198.0 million, a growth of 14.3% vs. FY23, at the high-end of our guidance.
• Strong gross margin performance, combined with well-monitored operating expenses lead to an EBIT of EUR 45.0 million generating a 22.7% EBIT margin. The EBIT performance lands at the high-end range of our guidance.
• Order intake at EUR 208.6 million, incl. EUR 8.3 million of Big Event Rental (BER), growing 8.1% compared to 2023.
• Strong financial result leading to a net profit of EUR 42.9 million (21.7% net margin) resulting in fully diluted earnings per share of EUR 3.02.
• Net cash position at end of December 2024 of EUR 74.9 million, providing solid financial power to execute on our growth strategy

Second half Highlights

• Revenue for the second half of 2024 at EUR 99.9 million, growing 16.5% compared to the same period last year.
• Net profit amounts to EUR 21.1 million, leading to fully diluted earnings per share of EUR 1.48.
• Strong order intake of EUR 121.8 million.
• Solid progression on working capital, mainly driven by an improvement of aged receivables.

Outlook

• The year 2025 started with a strong order book:

  • The total order book at the end of 2024 is of EUR 163.5 million, growing 6.7% compared to the same period last year.

  • The order book reserved for 2025 is estimated at EUR 107.0 million, growing 6.6% compared to beginning of the year 2024.

• The 2025 pipeline of opportunities is strong, growing 18% from a year-over-year perspective.

• Based on the order book, the pipeline and current market dynamics, the revenue guidance for the year 2025 is set at EUR 195-210 million.

• From a cost perspective, we will target further investments in North America so as to accelerate our objectives for that region. Investments will be prioritized to increase the presales, sales and customer service departments, so as to fully capture the growth potential of that area.

• We expect to pay out dividends for 2024 in line with our dividend policy, namely a base dividend per share of EUR 1.10.

Key figures

Market & Customers – Sustained Profitable Growth

Strong Presence at Major Summer Events

During the 2024 major summer events, EVS successfully delivered and supported the deployment of its three flagship solutions, enabling billions of viewers worldwide to experience the performance of top athletes. Customers across all regions attending these events had the unique opportunity to witness the robustness of EVS infrastructure, the efficiency of its workflows, and the benefits of its solutions for leading global operators.

Consistent Growth in LAB and NALA Regions

As outlined in the PlayForward strategic roadmap launched in early 2020, the Live Audience Business (LAB) market pillar and the NALA region continue to experience steady year-over-year revenue and order intake growth. This sustained momentum underscores the success of past investments in innovative solutions that address the evolving needs of our customers.

Illustrating this growth, EVS secured a major commercial deal with a leading U.S. bank, thanks to one of our main channel partners in the USA, demonstrating the relevance of our product portfolio for high-quality media production beyond traditional broadcasting.

It is also worth noting that EVS is the only company among its peers to achieve three consecutive years of NPS growth, highlighting our unwavering commitment to customer satisfaction and excellence.

Order Intake Growth Driven by Channel Partners

A key driver of EVS’s order intake growth is its network of strategic Channel Partners. This reflects the effectiveness of our evolving sales strategy, which is increasingly focused on indirect sales through strong partnerships with key industry integrators.

Global Deployment and Customer Support Excellence

The VIA MAP platform, part of MediaCeption solution for broadcast centers, developed through targeted internal investments, is now fully deployed and operational across all regions. This not only confirms strong market traction but also showcases the solution’s extensive feature set.

Additionally, EVS teams provided outstanding support during the 2024 major summer events, demonstrating their expertise in implementing a diverse range of workflows within complex environments.

This recognized expertise supports the growing demand for Service Level Agreements (SLA), driving an increase in recurring revenue streams.

Supply Chain Resilience and Operational Readiness

Amid ongoing geopolitical uncertainties, EVS remains proactive in mitigating potential supply chain disruptions. As part of our preparedness strategy, inventory used for the summer events has been reintegrated into different EVS facilities, serving as a strategic buffer to ensure rapid response to customer emergencies.

We also remain vigilant to any geopolitical impact that may come in the near future and do pro-actively define strategies to tackle any change in market conditions.

Technologies

Continued Investment in Technological Innovation

EVS remains steadfast in its commitment to driving innovation within the broadcast industry. In line with our strategic objectives, we continue to dedicate over 40% of our workforce to the technological development of our products and solutions. This unwavering focus is fundamental to our ability to stay ahead in a rapidly evolving industry. Our mission is to empower customers and EVS operators with cutting-edge tools that address their most pressing operational challenges.

Advancements in Broadcast-Specific Generative AI

Since 2017, EVS has been at the forefront of integrating generative AI technologies specifically designed for the broadcast sector. Following the successful launch of an enhanced on-premises version of XtraMotion in 2023 - our generative AI-powered slow-motion replay solution that enables operators to generate high-quality imagery with greater efficiency - EVS continues to expand its portfolio of AI-driven effects. These advancements enhance production quality without requiring additional specialty cameras, delivering greater flexibility and cost-effectiveness for broadcasters.

Cerebrum Everywhere: Expanding Broadcast Control Capabilities

Cerebrum, EVS’s industry-leading broadcast control and monitoring system, has been further enhanced with a critical new module for resource management. This powerful addition enables customers to optimize equipment usage while simultaneously reducing their carbon footprint – aligning operational efficiency with sustainability goals. As an open, vendor-agnostic solution, Cerebrum is increasingly becoming the industry standard for broadcast control and monitoring, offering unmatched flexibility and scalability for media operations worldwide.

Commitment to Sustainability

EVS is deeply committed to sustainability, integrating eco-conscious initiatives across all aspects of our business. Reducing power consumption and carbon footprints has become a key focus for our development teams, driving continuous improvements through architectural optimizations, product innovations, and software efficiency enhancements. These efforts reflect our broader responsibility toward environmental stewardship and our commitment to fostering a more sustainable future for the industry. Besides the environmental scope, we continue to strive for optimal working conditions and pro-actively support communities around the world, whilst we aim for an optimal governance of our company. Further details on these efforts and initiatives are presented in our annual sustainability report.

Corporate topics

Ongoing Transformation and Strategic Growth

EVS continues to evolve, aligning its organizational structure with the company’s sustained growth. In 2024, several leadership roles were adjusted, including the appointment of Oscar Teran as EVP Markets & Solutions. Additionally, the NALA team has been significantly strengthened, ensuring the local structure is well-positioned to support our ambitious growth objectives. Operational efficiency also remains a priority, with continuous improvements in internal tooling. While some of these advancements will operate behind the scenes, others will enhance the way customers interact with EVS, ensuring a more seamless and efficient experience.

Strategic Acquisitions & Investments

In October, EVS finalized the acquisition of MOG Technologies, expanding the Total Addressable Market of MediaCeption. This acquisition enables EVS to leverage MOG’s products, technology components, and talented team in Porto to accelerate growth in media management solutions. The first three months of integration have already demonstrated the strength of MOG’s team and the strategic value they bring to EVS’s development.

In August, EVS also acquired a minority stake in TinkerList, reinforcing our commitment to news and production automation. This investment is expected to drive further innovation and expand workflow capabilities in these key areas.

Commitment to Corporate Sustainability

Sustainability is now embedded in all aspects of our operations. Our nine core corporate sustainability tracks - which include customer and company carbon footprint reduction, talent management, diversity & inclusion, customer experience, local social contribution, cybersecurity, sustainable supply chain, and business ethics - have been further refined, with teams actively working toward achieving our PlayForward 2030 growth objectives. EVS remains a recognized ESG leader in the industry, consistently receiving positive market feedback for our commitment to sustainability and responsible business practices.

Top employer for the 3^rd year in a row

For the third consecutive year, EVS has been recognized as one of Belgium’s Top Employers, reinforcing the positive results of our internal surveys and strengthening our ability to attract and retain top talent.

Celebrating 30 Years of Innovation

In 2024, EVS celebrated its 30^th anniversary worldwide under the theme "Family and Friends Together for Live". During the Paris Olympics & Paralympics, various communities of broadcast industry stakeholders from around the globe gathered at the EVS House to celebrate past achievements and strengthen relationships for the future.

Share buyback

In December 2024 we launched a new share buyback program worth EUR 10 million. Per February 14^th 2025, we bought back 176,891 shares at an average share price of EUR 30.6488, representing in total EUR 5,421,493.22. This corresponds to 54.21% of the announced program. EVS currently owns 983,389 treasury shares representing 6.9% of the total shares.

Capital allocation strategy

In line with the corporate strategy, EVS has developed an end-to-end capital allocation framework. The goal is to provide transparency on how free cash flow will be deployed within the company. Based on the company’s growth plans, the allocation of cash will primarily be focused on generating both organic as well as inorganic growth.

For organic growth purposes, the company reserves a portion of its free cash flow to allow for internal investments. The objective of these investments is to ensure acceleration of our growth potential by allocation of funds to those projects that are expected to provide a solid return on investment over time. In this area we did decide in the past to launch some specific internal developments, such as VIA MAP as an example.

For inorganic growth, the company will set aside funds to support potential acquisition activities. The goal here is to focus on adjacent solutions that complement the current portfolio of EVS. We set a target of growing this specific fund annually by setting aside a portion of our free cash flow. This buffer for acquisitions will be proactively managed so as to ensure an optimal return and avoid any cash erosion, until the funds are allocated to a specified acquisition.

As a third pillar, EVS will continue to pay a base dividend. For the next 3-years 2025-2027 we propose a new dividend policy, fixing the annual dividend at EUR 1.20 per share. This renewed base dividend policy foresees a growth of EUR 0.10 per share (or 9.1%) compared to the previous policy covering 2022-2024.

A fourth pillar in the capital allocation strategy refers to an annual share buy back program, mainly linked to the funding of the long-term team member incentive plans. The goal is to offset the potential dilution caused by the annual issuance of warrants by repurchasing shares.

In case of any residual excess cash, the company may consider launching ad-hoc initiatives such as, for example, special share buy back program or special dividend payout.

Some of the aforementioned pillars are subject to approval by the general assembly, and all remain subject to any changes in market conditions or company dynamics. The capital allocation strategy serves as a framework to guide our decisions, whilst allowing for flexibility to adjust when market conditions change.

Second half and full-year revenue

In 2H24, revenue reached EUR 99.9 million, representing an increase of EUR 14.1 million or 16.5% compared to 2H23. Excluding Big Event Rentals, the growth is of 3.1%.

At constant currency, revenue increased by 16.5% YoY.

For the full year 2024, revenue reached EUR 198.0 million, representing an increase of EUR 24.8 million or 14.3% compared to 2023. Excluding Big Event Rentals, the growth is of 5.1%.

At constant currency, revenue increased by 14.3% YoY.

Currency fluctuations primarily impact EVS revenues by the EUR/USD conversion, which can have a significant impact on our results even if EUR/USD fluctuations also impact the cost of our US operations and partially our cost of goods sold.

In the second half of the year, excluding Big Event Rentals, LSP represented 38% of the revenue (40% in 2H23) while LAB accounted for 62% (60% in 2H23). The growth of LAB business is one of the strategic pillars of EVS and demonstrates our ability to expand our footprint with generic broadcasters.

Full-year earnings

Consolidated gross margin was at 72.3% for FY24, compared to 69.7% in FY23 (+2.6 Pts YoY). This improvement was primarily driven by sales price increases and a higher proportion of software compared to hardware in certain solutions. Additionally, the growth in service-related revenue contributed to the overall gross margin increase, resulting in improved margins across most of our solutions. The margin is positively influenced as well by a reclassification of internal assets previously presented under  inventory to other tangible assets, explaining approx. 1.7Pts of the increase. From an EBIT point of view, this change in accounting has no impact.

Operating expenses increased by 23% YoY driven by the expansion of the team members, the rising labour costs due to inflation, and higher associated expenses such as licenses, travel expenses, linked to our expanding resource base. Additionnally, the increase is also explained by the depreciation of the intangible assets created since 2022. For one of the projects, launched in 2022, a write off of the development costs was booked in 4Q24, as some recent events have led to a change in our go-to-market strategy. This changing strategy no longer fulfills the criteria of IAS38, as the product will no longer be launched as a stand-alone product, but rather as an option in the VIA MAP ecosystem.

Overall EBIT performance was of EUR 45.0 million, generating an EBIT margin of 22.7%.

The net profit ended at EUR 42.9 million, with income tax expense amounting to EUR 3.1 million for the full year 2024 (compared to EUR 3.6 million in 2023). The decrease in income tax is mainly driven by an increase in deferred tax assets reflecting existing tax latencies in the newly acquired company MOG Portugal, as well as higher deferred tax asset related to capitalized R&D costs in the Belgian parent entity. The decrease is partially offset by higher current income taxes resulting from increased pre-tax earnings at the Group level.

The net profit leads to a fully diluted earnings per share of EUR 3.02 (versus EUR 2.65 in 2023).

Second half earnings

The gross profit margin in 2H24 reached 72.6% compared to 69.3% in the same period last year.

Operating expenses grew 19% in 2H24 compared to the same period last year, reflecting a well-monitored increase in line with the increase of the activities.

The 2H24 EBIT margin was 21.2%. compared to 18.9% in 2H23 primilarly driven by the revenue generated by the Big Events rentals.

The Group net profit amounts to EUR 21.1 million in 2H24 compared to EUR 15.8 million in 2H23. Fully diluted earnings per share amounts to EUR 1.48 in 2H24 compared to EUR 1.13 in 2H23.

Balance sheet and cash flow statement

Balance sheet, already traditionally a strong element in the EVS finances, continues to improve. 2024 ends with a net cash position of EUR 74.9 million combined with low debt level (of which EUR 12.3 million related to IFRS 16), resulting in a total equity representing 76% of the total balance sheet as of the end of 2024.

Despite the increase in activities, working capital requirements remained relatively stable compared to last year at EUR 91.5 million. In percentage of sales, the working capital has decreased from 52% at year-end 2023 to 46%. This is mainly the result of continuous improvement in the collection of the receivables throughout the year, partially offset by a slight increase in inventories of EUR 1.5 million to support the growth of our activities.

Other intangible assets include the costs for internal development capitalized since 2022 according to IAS 38 (Intangible assets). It is to be noted that part of the intangible assets has been written off at the end of 2024 (EUR 1.1 million), given the fact that the conditions for IAS38 were no longer met after a change in strategy.

Lands and building mainly include the headquarters in Liège as well as the right of use for the offices abroad (IFRS16).

Inventories amount to EUR 34.5 million, an increase of EUR 1.5 million compared to the beginning of the year with the aim to support the continuous growth of activities. The ratio of inventory vs. sales improves from 19% in 2023 to 17% in 2024.

Liabilities include EUR 12.9 million of financial debt (including long term and short-term portion), mainly related to the lease liabilities for EUR 12.3 million and borrowings for EUR 0.6 million. Long-term provisions include the provision for technical warranty on EVS products for labor and parts. Other amounts payable mainly represent deferred income and advance payments received from customers on contracts in progress.

Net cash from operating activities amounts to a record-breaking EUR 63.9 million for the full year 2024, compared to EUR 35.7 million in 2023. The increase is mainly driven by higher net profit and favorable variance in working capital requirements compared to the previous year, mainly on trade receivables following the continuous improvement in the collection of customers invoices. On December 31, 2024, cash and cash equivalents total an all-time high EUR 87.8 million, compared to EUR 50.9 million at the end of 2023. The increase is mainly driven by the higher cash from operating activities as described above, partially offset by the net cash used in investing activities of EUR -6.6 million linked to the investments in intangible and tangible assets as well as business acquisitions of MOG and Tinkerlist, together with the net cash used in financing activities of EUR -21.4 million which results mainly from total dividend payment of EUR -14.9 million and reimbursement of lease liabilities and borrowings of EUR -5.7 million.

At the end of December 2024, there were 14,327,024 EVS shares outstanding, of which 839,544 were owned by the company. At the same date, 775,476 warrants were outstanding with an average exercise price of EUR 22.95 and maturities between October 2026 and September 2030.

Team members

At the end of 2024, EVS employed 705 full time equivalent team members. This is an increase of 83 FTE compared to the end of 2023 (622 FTE). In 2024, the acquisition of MOG technologies accounted for 42 of these 83 new FTE. For 2025, we expect an increase in the number of team members, especially in NALA, so as to continue and fuel our future growth.

Corporate update

There has been no further change to the composition of the Board of Directors since the last General Assembly on May 21^th 2024 during which the shareholders have renewed the mandates of Johan Deschuyffeleer, independent director & President (representing The House of Value bv), Martin De Prycker, independent director (representing InnoConsult bv) and Michel Counson, managing director, all for a period of 4 years. The Board of Directors is currently composed of nine directors:

• Johan Deschuyffeleer, independent director & President (representing The House of Value bv);
• Michel Counson, managing director;
• Martin De Prycker, independent director (representing InnoConsult bv);
• Chantal De Vrieze, independent director (representing 7 Capital SRL);
• Frédéric Vincent, independent director;
• Marco Miserez, independent director;
• Anne Cambier, independent director (representing Accompany You SRL);
• Serge Van Herck, CEO and managing director (representing InnoVision bv) ; and
• Soumya Chandramouli, independent director (representing FRINSO SRL).

Glossary

In case of discrepancies between the English and the French Version, the English Version prevails.

Conference call

EVS will hold a conference call in English on February 19th at 10.00 am CET for financial analysts and institutional investors. Other interested parties may join the call in a listen-only mode. The presentation used during the conference call will be available shortly before the call on the EVS website.

Participants must register for the conference using the link provided below. Upon registering, each participant will be provided with Participant Dial In Numbers, Direct Event Passcode and unique Registrant ID.

Online registration: events.teams.microsoft.com

Corporate Calendar

• May 16^th, 2025 : 1Q 2025 results (post market publication)
• May 20^th, 2025 : general assembly
• August 19^th, 2025 : 2Q 2025 and 1H 2025 results (post market publication)
• November 21^st, 2025 : 3Q 2025 results (post market publication)