CompuGroup Medical, a German e-health company, experienced a significant decline in its shares following the release of its fourth-quarter financial results. The company reported a net loss of 15.9 million euros ($17.1 million) for the quarter, compared to a profit of EUR13.8 million in the same period last year. The decrease in profitability can be attributed to increased personnel costs, including payments related to a restructuring of certain business units and group functions.
In addition to the loss, CompuGroup also saw a decline in revenue for the fourth quarter, dropping from EUR327.7 million to EUR306.9 million. However, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a slight improvement, rising from EUR67.9 million to EUR69.5 million.
Analysts at Baader Helvea expressed concern over the company's weaker-than-expected performance and its guidance for 2024. The analyst note stated that CompuGroup's 2025 profitability target is unlikely to be achieved based on the current trajectory.
Looking ahead, CompuGroup expects organic revenue growth between 4% and 6% in 2024, with an adjusted EBITDA range of EUR270 million to EUR310 million.
The company plans to release its full-year 2023 results on March 28.