Romanian technology firm AROBS concludes year 2024 with a revenue of 412 million Ron and a net earnings of 22 million Ron
AROBS Transilvania Software Announces Expansion Plans and Strong Financial Performance
AROBS Transilvania Software, a leading provider of custom software solutions, has revealed its growth strategies and expansion plans for the future. Based in Cluj-Napoca, Romania, the company has been in operation since 1998 and has grown from IT outsourcing to a reliable partner in offshore and nearshore software services, with a solid European foundation and international culture.
In a recent press release, AROBS announced a consolidated turnover of RON 412 million (EUR 83 mln) in 2024, a 2% increase from the revised budget. This growth was driven by a 11% increase in EBITDA to RON 60 million (EUR 12 mln) and a net profit of RON 22 million (EUR 4.4 mln), both exceeding the revised budget by 21%.
Expansion into the U.S. Market
One of AROBS' key expansion strategies involves a significant push into the U.S. market. This push is highlighted by the recent strategic acquisition of a 70% stake in the U.S.-based technology consulting company Codingscape. This move is aimed at reinforcing AROBS' presence and capabilities in the U.S., a key market for their growth ambitions.
European Growth and Compliance
In Europe, AROBS continues to emphasize compliance with evolving regulatory frameworks such as DORA (EU), SOX (US), and CSRD. This points to their intent to align their financial software solutions with international standards, possibly aiding expansion into regulated markets. Their presence in Romania and the broader European region remains a core part of their identity, with ongoing growth supported by strong local development teams and a focus on delivering tailored software solutions globally.
Focus on Emerging Technologies
AROBS recognizes the impact of artificial intelligence and automation on business efficiency and the expansion of its solutions. In 2024, the company implemented various projects involving emerging technologies such as machine learning, artificial intelligence, big data, etc. This focus on integrating emerging technologies into its solutions is a key part of AROBS' future plans.
Cost Adjustments and Financial Prudence
AROBS exercised strict resource control, including careful management of recruitment and salary structures, to ensure a balance between business growth and long-term financial prudence. The company also implemented measures to adjust cost structures and streamline internal processes to strengthen competitiveness.
Segment Performance
The "Software Services" segment generated 79% of AROBS' total turnover in 2024, amounting to RON 325 million. The "Software Products" segment accounted for 19% of the total turnover, with revenues of RON 81 million, a 14% increase from 2023. The "Integrated Systems" segment, represented by AROBS Systems, had revenues of RON 7 million in 2024.
Future Plans
AROBS plans to expand its international presence through acquisitions, opening new sales offices and delivery centers, consolidating existing partnerships, and exploring new growth opportunities in Europe and the U.S., starting in 2025. The company also aims to develop technology products and solutions for the European market and beyond in the future.
AROBS Transilvania Software (BVB: AROBS) is listed on the Main Market of the Bucharest Stock Exchange, Premium category, as of September 25, 2023. The company continues to focus on innovation and technological development throughout its operations.
AROBS sees significant growth potential in the "Integrated Systems" segment, anticipating contract awarding decisions for remaining projects in the first half of 2025. The company recognizes the impact of artificial intelligence and automation on business efficiency and the expansion of its solutions.
- AROBS Transilvania Software has announced its expansion into the U.S. market as one of its key strategies, reinforced by the recent acquisition of a 70% stake in the U.S.-based technology consulting company Codingscape.
- In line with their future plans, AROBS recognizes the importance of integrating emerging technologies such as machine learning, artificial intelligence, and big data into its software solutions, with a focus on compliance with international standards to aid expansion into regulated markets.
