Connections, a technology company listed on the Bucharest Stock Exchange, AeRo market, under the ticker symbol CC, ends the year 2024 with solid financial results, strengthening its market position with a double-digit gross profit margin and significant investments in technology and cybersecurity.
The year 2024 marked a milestone for the company, with a gross profit margin of 10% for the first time since its listing on the stock exchange in 2021. Gross profit reached 10.2 million RON, while net profit amounted to 8.8 million RON.
Revenues for 2024 amounted to 106 million RON, below the initial estimate of 129 million RON. This difference was influenced by the withdrawal of three projects from the pipeline, however, the group’s operational efficiency and swift responsiveness ensured the maintenance of robust profitability.
“Our financial results confirm the company’s ability to navigate a volatile economic environment and quickly adapt to market challenges. The increase in profit margin reflects our balanced strategy of investment and cost optimization. Despite some shortfalls compared to the projected revenues for 2024, we managed to achieve our profitability targets and strengthen our position for the future,” said Bogdan Florea, founder and co-CEO of Connections.
Investments and technological development
The company made significant progress in AI, fintech, and cybersecurity, adapting its solutions to market demands and optimizing internal software development. In 2024, a project based on a Large Language Model (LLM) was initiated, which, once completed, is expected to generate a 15% increase in operational efficiency and reduce response times to customer requests by up to 40%.
Additionally, the company delivered open banking solutions in the Middle East, thus expanding its international presence and strengthening its expertise in the fintech sector.
“Technology and innovation remain the pillars of our growth. We have made significant investments in AI-based solutions and cybersecurity, and the results will be reflected in increased efficiency and an improved customer experience. In this way, we are strengthening our position as a key player in our industry,” added Radu Marcu, co-CEO Connections.
Organizational culture and impact on the team
The financial performance was also supported by a strong organizational culture, reflected in a 25% increase in internal initiatives proposed by employees and a retention rate of 92%. The company’s values and objectives were clearly defined, fostering team engagement and contributing to an innovative work environment.
A key pillar of the team motivation and retention strategy was the expansion of the Stock Option Plan (SOP). The Extraordinary General Meeting of Shareholders (EGMS) on 27.09.2023 approved raising the SOP cap from 3% to 13%, allowing shares resulting from capital increases or purchased from the market to be granted to employees based on annual performance, without additional formalities in the future.
In 2024, over 20 team members signed option contracts, bringing the number of employee shareholders to nearly 30. The actual transfer of shares is set for 2025, further strengthening the ownership culture, with positive effects on direct involvement in the company’s success.
PERSPECTIVES
Looking ahead, Connections expects a 20% revenue growth in 2025, driven by the increasing demand for its innovative solutions. In the second quarter of the year, the company will celebrate its 20th anniversary, during which it will launch its new corporate identity.
“Our success is the direct result of a dedicated team, strategic partnerships, and the trust of our investors. We are ready to seize future opportunities and continue delivering value to all our stakeholders,” concluded Bogdan Florea, Founder & co-CEO of Connections.
Starting in 2025, the company will transition from two annual reports to four quarterly reporting sessions as part of its preparations for a potential move to the regulated market of the Bucharest Stock Exchange, which the issuer is considering in the medium term. The full report on Connections’ preliminary results for 2024 can be accessed here.