Magic Software Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Magic Software Enterprises Ltd. reported strong financial results for Q4 and the full year 2024, highlighting growth in revenues and net income, alongside a strategic merger with Matrix I.T [1][13]. Financial Highlights for Q4 2024 - Revenues increased by 13.6% to $142.6 million compared to$125.5 million in Q4 2023 [2][8]. - Gross profit rose by 13.5% to $42.0 million, with a gross margin of 29.4$16.7 million, resulting in an operating margin of 11.7% [2][8]. - Net income attributable to shareholders increased by 25.2% to $10.6 million, translating to a diluted EPS of$0.22 [2][8]. Financial Highlights for Full Year 2024 - Total revenues for the year grew by 3.3% to $552.5 million from$535.1 million in 2023 [6][7]. - Gross profit for the year was $157.2 million, with a gross margin of 28.4$61.2 million, with an operating margin of 11.1% [6][14]. - Net income attributable to shareholders slightly decreased by 0.4% to $36.9 million, maintaining a diluted EPS of$0.75 [6][14]. Dividend Declaration - The board declared a semi-annual cash dividend of $0.327 per share, totaling approximately$16.1 million, reflecting about 75% of distributable profits for the year [9][10]. Strategic Developments - The company announced a Memorandum of Understanding for a merger with Matrix I.T, which is expected to create a combined entity valued at approximately $2.1 billion [13][15]. - The merger aims to enhance capabilities and drive innovation, positioning the new entity among the largest publicly traded IT services companies in the U.S. and Europe [13][15]. 2025 Revenue Guidance - Magic Software provided revenue guidance for 2025, projecting between$593 million and $603 million, indicating an annual growth of 7.3% to 9.1% compared to the previous year [14].