Not a very good start to the year. 80% of their business is in mid-market and SMB and those segments have been soft for a while. Vlad said on the call in February that they actually reduced spending with Dicker in 2024. To offset they ended up chasing more business in enterprise which has lower margins. This looks like it has continued into 2025.
The upswing looks like it's going to take a little bit longer than expected. They need the SMB and mid-market segments to normalise which should be accretive to group margin. I think this is what they are expecting for the remainder of the year judging by their commentary in the profit outlook statement.
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