Press Release – Q1 2022

Matrix continues its momentum with the best quarter in its history

Revenues for the first quarter of 2022 grew by about 6.4% to approximately NIS 1.18B, operating profit grew by about 12.5% ​​to approximately NIS 92.1M, and net profit skyrocketed by about 23.4% to approximately NIS 68M


This morning Matrix released its results for the first quarter of 2022, as it continues to show growth in all indices and yet again breaks records with the best quarter of all time in revenues, operating profit, net profit, and dividends.

Matrix revenues in the first quarter of 2022 amounted to approximately NIS 1.18B, compared with approximately NIS 1.1M in the corresponding quarter of the previous year, an increase of about 6.4%. Gross profit amounted to approximately NIS 167.8M, compared with approximately NIS 153.6M in the corresponding quarter of the previous year, an increase of about 9.2%.

Operating profit amounted to approximately NIS 92.1M, compared with approximately NIS 81.9M, an increase of about 12.5%. Net profit amounted to approximately NIS 68M, compared with approximately NIS 55.1M, an increase of about 23.4%. EBITDA amounted to approximately NIS 127.5M, compared with approximately NIS 111.7M in the first quarter of the previous year.

Dividend: As every quarter, Matrix continues to distribute dividends to its shareholders at a rate of up to 75% of net profit. With the publication of the financial results, the company announced a dividend of approximately NIS 44.6M, which is also an all-time record for a quarterly dividend amount.

Cash and cash equivalents as of March 31, 2022, amount to a total of approximately NIS 715.8M, compared to approximately NIS 449.8M last year. The company shareholders’ equity as of March 31, 2022 stands at approximately NIS 900.5M, compared with approximately NIS 849.9M in the corresponding quarter last year.

The solid financial situation is expressed in the Aa3 issuer rating, with a stable horizon, awarded to Matrix for the 15th time in a row  by Midroog last March.

In addition, it should be noted that on April 24, a transaction was completed, as part of which Matrix Group sold what constitutes about 45.2% of the issued share capital of the subsidiary Infinity Labs R&D. Ltd. (“Infinity”), so that after the completion of the transaction, the company was left with a holding of 4.9% of share capital of Infinity, according to a company valuation of approximately NIS 375M. As a result of the transaction, the Company estimates that it will record a capital gain (before tax), in the amount of approximately NIS 160M gross (including revaluation of a holding balance of 4.9%) in its financial statements for the second quarter of 2022.

Summary of consolidated earnings reports for the three months ending on March 31, 2022, and 2021 (in thousands of shekels) >>

According to Motti Guttman, CEO of Matrix: “This morning we conclude the first quarter with an all-time record result in all relevant indices. These are the best first quarter results we have presented so far since the inception of Matrix, exceeding even our achievements in 2021. We are in the midst of A growth spree in all sectors and activities of the company. As in every quarter, we pride ourselves in continuing to meet the challenging objectives we set for ourselves and even surpass them, while demonstrating steady growth and financial strength. This is reflected in the financial data with an increase in revenues, operating profit, and especially IN the bottom line: the net profit and the resulting distribution of dividends enjoyed by company shareholders.”

Guttman added: “In the sector by sector analysis of the activity, Matrix registers an increase in revenues in all of them. A prominent rise in revenues was registered in the IT solutions and services sector in the US, with a surge of about 9.4% in revenues and about 23.6% in operating profit. After about two years of the COVID crisis, which affected many businesses in the US, business activity is back on track. The continuing growth in the activity of the cloud and computing infrastructure sector also should be noted. We are experiencing high demand for cloud solutions, information security, and remote work, together with a significant increase in demand for solutions for addressing the involved cyber risks.”

“In the last two years, as the economy continues to learn to live alongside COVID, we have experienced unprecedented high demand for services and solutions in the hottest technological areas such as digital, cloud, cyber, data, and core operational systems. During this period, we identify “evolutionary changes” in market needs. For example, if in the early days of COVID the common need was for cosmetic and fast digital solutions, today the demand is focusing on advanced digital solutions, which emphasize customer experience, incorporate data technologies, handle behind-the-scenes processes, and give our customers a competitive edge in the market. We are at the forefront in all these areas and specialize in all the most innovative technologies, to be able to continue to lead the IT industry in Israel, as we have been doing for many years. Recently STKI ranked Matrix for the 16th time in a row in first place in the most significant category — the value-added services market, and as a Tier 1 leader in dozens of technology categories, including data, cloud, low-code, DevOps, digital transformation, cyber, CRM, ERP, and more.”

“In the coming months, we expect additional complex and challenging projects, many of which will be carried out in the security, government, health, and finance sectors. Matrix’s diverse human capital, which consistently grows and expands over time, is our main growth engine that allows the company to continue to lead large projects that change the reality of our lives. All these are reflected in the business output of Matrix, as they show stable and continuous improvement in our business results and in breaking records quarter after quarter.”

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