Earnings Release • Mar 11, 2025
Earnings Release
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Capital Markets Board Bulletin No. 2023/81 datedDecember 28,2023, announced that issuers and capital marketinstitutions are required to prepare theirannual financial statements forthe fiscal periods ending on or after December 31, 2023, in accordance with the provisions of IAS 29 inflation accounting.
Accordingly, this presentation regarding the 2024 forth quarter audited financial results contain the Company's financial information prepared according to Turkish Accounting/Financial Reporting Standards by application of IAS29 inflation accounting provisions.
In addition to this information, given that the guidance information and the 2024 FY financialresults announced so far were presented without the application of inflation accounting, in order to enable investors and analysts to conduct a fullfledged analysis, supplementary historical information for selected key performance indicators used in prior periods' investor
presentations were provided.Such supplementary information is made available for this period, and contains unaudited financial information prepared for management reporting purposes.
The information and opinions contained in this document have been prepared for the purpose of providing a consistent and comparable evaluation of our financial performance, under the responsibility of our Company's Board of Directors and managers responsible for financial reporting.
This presentation may contain forward-looking statements reflecting the current views, expectations, assumptions, and forecasts of the Company's management regarding certain future events, using words such as "may," "will,""expect," "believe," "plan," and "anticipate." While the Company believes that the expectations reflected in these forward-looking statements are reasonable under current circumstances, actualresults may differ depending on developments and events affecting the
variables and assumptions underlying future expectations and estimated figures.
The Company, its shareholders, members of the board of directors, managers, employees, or any other person cannot be held responsible for any damages that may arise from the use of the contents of this presentation.
160 employees globally, in 8 countries
Continuous R&D Investment with expert staff in in Türkiye 3 R&D centers
Kron Technologies, a leading software company specializing in cybersecurity, distinguishes itself in the global arena with its high-quality and innovative solutions. The company has garnered numerous achievements and awards, underscoring its technological excellence and customer-centric ethos.
Kron Technologies was highlighted in two distinct categories in KuppingerCole's Leadership Compass reports in 2024. Kron PAM was listed in the Leadership Compass for Privileged Access Management, highlighting its strength in securing privileged accounts, while Kron DAM&DDM was recognized in the Leadership Compass for Data Security Platforms, showcasing its growing impact in data security. These recognitions further establish Kron's position as a leader in both privileged access management and data security solutions.
Kron Technologies has been recognized multiple times by Gartner, solidifying its position in the cybersecurity domain. Kron PAM was selected into Gartner's Magic Quadrant for Privileged Access Management (PAM) in 2020 and 2021, making Kron the only Turkish company to be included in the Magic Quadrants for cybersecurity. In 2024, Kron's DAM&DDM product was featured in Gartner's Market Guide for Data Masking and Synthetic Data, marking the second Kron product to be acknowledged by Gartner outside of PAM.
Kron Technologies was recognized as a leading Privileged Access Management (PAM) provider in the "Omdia Universe: Selecting a Privileged Access Management Solution" report published in 2021- 22. The company stood out in key areas such as customer experience, solution capabilities, and market impact, further reinforcing its reputation as a trusted global Cybersecurity provider.
Strategic shift to subscription licensing model is accelerating recurring revenue growth, creating a more predictable and scalable business
Sustained Total Sales with Higher Recurring Revenue Mix
2024 invoiced sales stable at \$10.3m despite transition to subscription
Recurring revenue share grew to 55%, up from 42% in 2023
Accelerated Growth in Annual Recurring Revenue (ARR)
95% Y-o-Y increase, reaching \$5.15m
Significant Expansion in Subscription Revenue
245% increase, driven by our disciplined shift to subscription licensing in key markets
Strong performance in our home market, key investments in global expansion and strategic initiatives positioning us for future growth
Channel Expansion for Scalable Growth Launched Partner Portal and Channel Program to accelerate growth through stronger partnerships
Short term trade-offs, for long term gains Strategic shift to subscription licensing adversely impacted topline & profitability in the short-term, but enhances long-term growth
Industry Trends Shaping Cybersecurity
Four Key Trends Redifining the Future of Cybersecurity
Proliferation of Machine Identities
Zero Trust to Adaptive Security
Data Centric Security
*Verizon Data Breach Investigators Report, 2023 **Gartner Innovation Insight Secret Management Tools, 2024 ***IDC Global DataSphere Forecast, 2024
Remote Work and Mobility
Rapid Growth of Machine Identities
Hybrid & Multicloud Infrastructure
Sophistication of Identity Based Attacks
Secure Remote Access Database Access Management Secrets Management Privileged Session Manager AI-Based Threat Analytics CIEM Password Vault Privileged Task Automation
End Point Privilege Manager Multi Factor Authentication TACACS +/ Radius Access Manager
Massive Growth of Data
Regulations and Compliance
Database Activity Monitoring
Dynamic Data Masking
Telemetry Pipeline
Accelerated transition to a subscription-based model, causing a short -term revenue dip
Underperformance in U.S. operations during the transition to a new team
Persistent gap between inflation (44.3% IAS 29 adjustment rate) and exchange rate changes (19.5%) in 2024
EBITDA declined Y-o-Y to 77.8 million TL, resulting in a 25% margin, falling short of our guidance of 30-32%
Profitability was impacted by:
(*) 64.9% Invoiced revenues are revenues that have been invoiced within the relevant reporting period but are recognized in the income statement in the same reporting period or in subsequent reporting periods, according to IFRS rules. Figures do not include the effect of IAS 29.
Net Cash Position (TL m)
| Net Cash Position |
31 December 2023 | 31 December 2024 |
|---|---|---|
| Cash and Cash Equivalents |
+87.5 | +81.6 |
| Bank Debt |
-48.0 | -47.9 |
31 Dec 2024 Receivables TL 181.4m USD Average Weighted Interest Rate of 8.7%
All figures include IAS29 impact
Kron Technologies © 2024 FY Results Presentation Page 11
| TL | 31 December 2023 | 31 December 2024 | Change % |
|---|---|---|---|
| Cash, Cash Equivalents and Financial Investments |
89,317,654 | 86,234,894 | -3% |
| Trade Receivables |
284,381,464 | 181,479,012 | -36% |
| Inventory | 2,681,884 | 1,728,645 | -36% |
| Tangible Assets |
8,069,757 | 10,747,974 | 33% |
| Intangible Assets |
266,365,084 | 369,004,922 | 39% |
| Deferred Tax Assets |
2,434,361 | 3,516,492 | 44% |
| TotalAssets | 716,981,623 | 713,314,910 | -1% |
| Short-Term Financial Liabilities |
169,375,929 | 235,488,119 | 39% |
| Trade Payables |
5,844,373 | 11,577,384 | 98% |
| Total Liabilities |
265,539,677 | 332,216,111 | 25% |
| Equity | 451,441,946 | 381,098,799 | -16% |
| Total Equity + Liabilities |
716,981,623 | 713,314,910 | -1% |
All figures include IAS29 impact
| TL | 2023 | 2024 | Change % |
|---|---|---|---|
| Net Sales |
445,249,670 | 313,648,731 | -30% |
| Cost of Sales |
(56,000,635) | (46,470,659) | -17% |
| Gross Profit |
389,249,035 | 267,178,072 | -31% |
| Gross Profit Margin |
87% | 85% | |
| Operating Expenses |
(244,257,435) | (257,402,503) | 5% |
| G&A Expenses |
(50,978,938) | (48,192,679) | -5% |
| Marketing Expenses |
(129,059,764) | (127,842,547) | -1% |
| R&D Expenses |
(104,672,169) | (107,612,613) | 3% |
| Other Operating Income/Expense Net , |
40,453,436 | 26,245,336 | -35% |
| OperatingProfit | 144,991,600 | 9,775,569 | -93% |
| Amortisation | 53,384,752 | 55,679,636 | 4% |
| EBITDA | 198,376,352 | 77,822,087 | -61% |
| EBITDA Margin |
45% | 25% | |
| Financial Expenses, Net |
(9,388,082) | 2,828,868 | -130% |
| Monetary Gain /(Loss) |
(83,277,773) | (58,610,589) | -30% |
| ProfitBeforeTaxes | 56,099,887 | (43,323,048) | -177% |
| Tax Income /(Expense) |
10,849,087 | 594,582 | -95% |
| Profit/(Loss) | 66,948,974 | (42,728,466) | -164% |
| Profit Margin |
15% | -14% |
All figures include IAS29 impact
Page 16 Kron Technologies © 2024 FY Results Presentation
BIST: KRONT | krontech.com | [email protected]
Kron Technologies © 2024 FY Results Presentation Page 17
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