Alchimie's 2024 Results: A Rocky Transition to Tech—Is This Stock a Buy or a Bust?

The financial markets are full of companies caught in the crossfire of technological disruption, and Alchimie SA (ALCHI.PA) is no exception. After reporting its 2024 annual results, the French video streaming and SaaS provider has delivered a mixed bag of progress and pain. Let’s dive into the numbers and decide whether this stock is worth betting on—or if it’s better to walk away.

The Revenue Slide: A Necessary Evil?

Alchimie’s 2024 revenue plunged by 28.4% to €8.1 million, down from €11.3 million in 2023. This drop isn’t a failure—it’s a strategic choice. The company sold its legacy “historical contracts,” which once accounted for 85% of revenue, to Digital Virgo Group. These contracts, tied to declining subscriber bases in France and Germany, were a drag on its pivot to high-margin SaaS and VPaaS offerings like Videowall and 42videobricks.

But here’s the catch: the new business isn’t yet firing on all cylinders. The slow rollout of these products—due to what CEO Pauline Grimaldi d’Esdra calls a “corporate wait-and-see attitude”—has left Alchimie reliant on residual revenue from those very legacy contracts it’s trying to abandon.

Strategic Shifts: Cost Cuts and Cash Reserves

The company has been ruthless with costs. Operating expenses dropped by 18% in H1 2024, with administrative costs slashed by 34%. This discipline helped it maintain a €4.9 million cash balance by year-end—critical for survival.

But profitability remains elusive. While H1 EBITDA eked out a €31,000 profit, the full-year EBITDA stayed negative. The company also carries negative shareholders’ equity (-€3.8 million), a red flag for investors.

Partnerships and Progress

Alchimie isn’t without亮点. Its Maisonsdumonde+ platform—a video service for the loyalty program of French retailer Maisons du Monde—showcases the potential of its SaaS model. With over 50 hours of curated content (think interior design tutorials and celebrity collaborations), it’s a blueprint for monetizing niche markets.

The renewal of ties with Bauer Media Group, expanding platforms like Maxi TV and Télécâble Sat TV, also hints at growth. Yet these wins are small-scale. To scale, Alchimie needs to crack the corporate market with Videowall, its enterprise-focused SaaS tool for custom video channels.

The Debt Deal: A Lifeline or a Band-Aid?

In April 2025, majority shareholder HLD Europe waived a €7 million debt, a move that buys Alchimie time. But the recovery clause—requiring repayment if profits resume or the company is sold—adds uncertainty. This isn’t a permanent fix; it’s a bridge loan to a future that hinges on execution.

2025 Outlook: Can the New Model Deliver?

Alchimie’s 2025 goals are clear: accelerate Videowall adoption, expand content catalogs, and deepen partnerships. But the risks are stark:
- Market Hesitancy: Corporate clients are slow to commit to new video platforms.
- Revenue Dependency: If legacy contracts fully fade and SaaS adoption stalls, cash reserves could evaporate.
- Profitability Lag: Even with cost cuts, EBITDA is unlikely to turn positive in 2025.

Investment Verdict: Buy the Dip or Bail?

The math is tough. Alchimie trades at a price-to-sales ratio of 0.5x—cheap, but only if the SaaS pivot works. The stock has lost 58% of its value over two years, reflecting investor skepticism.

The Bull Case: If Videowall gains traction, Alchimie could become the go-to B2B video platform for corporate training, loyalty programs, and niche streaming. The €8.1 million revenue base in 2024 is a floor, not a ceiling.

The Bear Case: The slow rollout of new products and reliance on dwindling legacy revenue could push Alchimie into a liquidity crisis. With negative equity and no EBITDA, patience may run thin.

Final Analysis: A High-Risk Gamble

Alchimie is a classic “turnaround play”—high reward, high risk. The stock’s valuation is enticing, but execution is everything. Investors must ask: Will the corporate world finally embrace Videowall, or will Alchimie’s pivot prove too little, too late?

For now, the jury’s out. If you’re a risk-taker with a long-term horizon and believe in Alchimie’s tech, dip your toes in. But if you’re playing it safe, wait for clearer signs of SaaS revenue growth—and hope the debt waiver isn’t the last lifeline this company gets.

Conclusion: Alchimie’s 2024 results highlight a company in transition, not collapse. With a disciplined balance sheet and strategic partnerships, it has a fighting chance. But the road to profitability is littered with obstacles. This isn’t a buy for the faint of heart—but for tech bulls willing to bet on disruption, it’s worth watching closely.