- Growth stock to watch NTG Clarity Networks (TSXV:NCI) generated record net income of C$9.9 million and revenue of C$56.1 million in 2024
- Management expects “meaningful growth, profitability and cash generation” in 2025
- NTG Clarity Networks provides software, networking and IT solutions to large enterprises primarily in North America and the Middle East
- NTG Clarity stock has added 290.24 per cent year-over-year and 1,130.77 per cent since 2020
Growth stock to watch NTG Clarity Networks (TSXV:NCI) generated record net income of C$9.9 million and revenue of C$56.1 million in 2024. Here are the highlights:
- Revenue grew by 102 per cent year-over-year (YoY) thanks to customer retention of over 90 per cent, including 54 per cent expanding their services and a 25 per cent increase in total customer count.
- Gross profit added 137 per cent YoY from C$8.8 million to C$20.8 million driven by a higher mix of offshore revenue.
- Net income rose by 326 per cent to C$9.9 million, up from C$2.3 million YoY, reflecting improved gross margins and “the operating leverage of the company’s scalable model,” according to Tuesday’s news release.
- Adjusted EBITDA was up by 294 per cent to C$12.3 million (22 per cent of revenue), up from C$3.1 million (11 per cent of revenue) YoY.
- Operating cash flow reached C$2.6 million.
- Free cash flow came in at C$1.6 million.
This marks NTG Clarity’s fourth-straight year of net income profitability going back to 2020, with revenue growing by seven times over the period to date.
NTG Clarity’s 2025 outlook
Management sees “meaningful growth, profitability and cash generation” in 2025, the news release continues, supported by a backlog of more than C$105 million – approximately C$80 million of which is secured against three-year contracts – and the company’s ability to sidestep tariffs issued by U.S. President Donald Trump thanks to its global diversification.
The company’s 2025 guidance is C$75 million in revenue and an adjusted EBITDA margin between 16-20 per cent, the latter affording management the flexibility to reinvest profits in hiring, training and long-term scaling to capitalize on the global digitization tailwind.
Investors current and prospective can learn more about NTG’s 2024 performance and future goals at a conference call on April 16 at 11:00 am ET.
Leadership insights
“2024 has been a transformative year for NTG. Decades of strategic investment aligned with strong market tailwinds to deliver exceptional results,” Adam Zaghloul, vice president of strategy and planning at NTG Clarity Networks, said in a statement. “These results are a testament to our incredible team, who continue to deliver outstanding value for our customers. The impact is clear in our KPIs – customer retention exceeded 90 per cent in 2024, and more than half of our customers expanded their engagement with us.”
“We also saw meaningful growth driven by our referral network, which contributed to a 25 per cent increase in customers,” Zaghloul added. “Importantly, 2024 is just the beginning. We’re in the fortunate position of being insulated from tariff-related uncertainty, and we continue to benefit from the macroeconomic tailwinds fueling digital transformation. Our clients are recognizing the value we provide, reflected in the increasing size and duration of the contracts we’re signing.”
About NTG Clarity Networks
NTG Clarity Networks, est. 1992, provides software, networking and IT solutions to large enterprises to expedite their digital transformation. The company is primarily active in North America and the Middle East.
NTG Clarity stock (TSXV:NCI) last traded at C$1.60. The stock has added 290.24 per cent year-over-year and 1,130.77 per cent since 2020.
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