Top-line declined 22% YoY amid a normalization of revenue recognition but comes below expectation
Humansoft’s top-line in 2Q 2022 declined 22% YoY to KWD 20.9mn, which was expected as the company’s revenue recognition was impacted due to COVID-19 as a result of which a higher than the usual revenue was booked last year. However, the revenue came 8% below our expectation.
Gross and operating profit come largely in line due to better than estimated efficiency
Despite the below-expected revenue, gross and operating profits were largely in line with our forecasts (-5% and -4% variation, respectively). This resulted from a better-than-expected efficiency as gross and operating profit margins came 251 and 288 basis points more than our estimate at 79.9% and 58.3%, respectively.
Net profit also largely matched our forecast
Owing to the weakness in the top-line, net profit fell 32% YoY to KWD 11.9mn, largely in line with our estimate of KWD 12.4mn.