2024 was a transformative year for Milestone, marked by the strategic acquisitions of Arcules and BriefCam. We are enthusiastic about integrating the talented employees and leveraging their expertise to further enhance our business capabilities. These acquistitions not only expand our portfolio but also fortify Milestone’s market position.
In addition to our growth through acquisitions, we achieved robust revenue and profitability increases, despite the challenges posed by geopolitical risks in the Middle East and Ukraine.
Invoiced revenue amounted to DKK 2.1 billion, corresponding to an increase of 10.5 percent. After adjustments for revenue deferrals and the impact of cash flow hedging and sales incentives net revenue was DKK 2.0 billion. This is an increase of 18.8 percent compared with 2023. Net income amounted to DKK 62 million, a decrease of 11.7 percent. Milestone considers this satisfactory considering the business impact of the challenging macroeconomic factors globally.
The 2024 world economy had a more positive outcome than 2023 in terms of decreasing interest-and-inflation rates, however, the security situation in the Middle East region and Ukraine continues to cause uncertainties in markets. Despite these uncertainties, we had a continuous revenue growth reflecting that there’s a strong demand for our products.
AMERICAS invoiced revenue amounted to DKK 961 million, corresponding to a 6.3 percent increase compared with 2023. The increase happened primarily in the US, which contributed significantly with an 11 percent YoY increase. The Key Account Team had a significant role to play in 2024 with several Enterprise Software deals that propelled the US forward and brought in 11 percent of valuable software growth in the region. Care renewals grew 18 percent in 2024, obtaining 33 percent of our total product mix.
LATAM business continue to grow and in 2024 invoiced revenue represented DKK 73 million corresponding to a 5.4 percent YoY increase. Most of the growth came in the last quarter of 2024, driven by the completion of a substantial number of previously stalled projects. Software grew by 17 percent YoY with Mexico Center leading the charge with a stellar software performance.
APAC invoiced revenue decreased 7.2 percent in 2024 to DKK 192 million. Key projects were won within smart cities, airports, and other critical infrastructure. India experienced significant impact from 2024 elections and project delays. South Pacific declined on license sales amongst strong competition but grew on Care sales. Asia continues to see strong growth with both new and existing customers, with over 25 percent YoY growth in software licenses.
EMEA region experienced flat growth in 2024 with an invoiced amount of 771 million in line with 2023, primarily due to a decline in hardware sales on large orders. We successfully mitigated its impact through growth in our license and care products. Despite facing a historic large license order in 2023, our strategic focus on expanding these segments allowed us to offset the downturn in hardware sales. This balanced approach underscores our resilience and adaptability in a dynamic market environment. The acquisitions of Briefcam and Arcules have contributed DKK 168 million to our invoiced revenue.
Operating expenses totaled DKK 1,716 million compared with DKK 1,424 million in 2023, representing an increase of 20.4 percent.The increase is primarily driven by the expansion of our workforce following the acquisition of BriefCam and Arcules as part of our growth strategy. Despite having increased our headcounts, operating expenses measured in percentage of revenue only increased to 85.7 percent in 2024 compared with 84.4 percent in 2023, which is due to increased efficiency in the delivery model. Another reason for this is that Milestone has made some organizational adjustments in 2024 to be fit for the future.
Research and development expenses amounted to DKK 496 million compared with DKK 356 million in 2023. Total research and development expenses correspond to 23.9 percent of net revenue in 2024, an increase of 21.1 percent compared to 2023. The increase mainly relates to the acquisitions of BriefCam and Arcules, which resulted in a total increase of salary on DKK 104 million, and roughly DKK 20 million in related cost and investments in line with our new Tech Strategy.
Distribution and sales costs amounted to DKK 998 million, compared to DKK 915 million in 2023, which represents an increase of 9.1 percent. The cost increase is primarily explained by added headcounts from BriefCam and Arcules and increased travel activities. Total distribution and sales costs corresponded to 49.8 percent of net revenue, a decrease from 54.2 percent in 2023.
Administrative expenses amounted to DKK 221 million compared with DKK 153 million in 2023, which corresponds to an increase of 43.9 percent. Total administrative expenses correspond to 11.9 percent of net revenue, an increase from 9.7 percent in 2023. The increase is explained by added headcounts, provision of bad debt, increased software/license costs and one off transaction costs related to the two acqusitions.
An operating income (EBIT) of DKK 107 million was recorded for the year, compared with DKK 105 million in 2023.
The acquisitions of BriefCam and Arcules expanded our business, contributing to both revenue growth and higher costs compared to 2023. Given this, the slight increase in EBIT is a positive and expected outcome. Profit before tax was DKK 179 million in 2024, compared to DKK 110 million in 2023, corresponding to an increase of 62.4 percent impacted by a favorable USD FX gain.
The total value on our balance sheet as of December 31, 2024, was DKK 3,022 million, compared with DKK 2,078 million on December 31, 2023. The total equity amounted to DKK 1,343 million at the end of 2024, compared with DKK 896 million at the end of 2023. Cash at bank and in hand as of December 31, 2024, was DKK 949 million, compared with DKK 292 million on December 31, 2023.
The primary reason for the balance sheet increases relates to the acquisitions of BriefCam and Arcules. Milestone’s financial position is considered strong and healthy.
The Executive Leadership Team continues to believe that there are significant business opportunities for Milestone, particularly within cloud, video analytics data and artificial intelligence.
The strategic acquisitions of BriefCam and Arcules have been pivotal in driving our growth aspirations, significantly enhancing our market presence and capabilities. We have maintained strong market growth in our key markets.
Expectations for 2025 include growth in net revenue at least on par with market growth and maintaining our EBIT margins compared to 2024. Our financial targets reflect our ambition to secure profitable growth while reinforcing our market leadership by investing in key strategic and operational areas including product development within both VMS, Cloud and Analytics. Focus areas for 2025 include sales efficiency, business transformation, and structural optimization across our value chain.
However, some uncertainty remains due to the geopolitical situation globally and specifically the security situation in the Middle East and Ukraine. Additionally, global trade dynamics and overall global economic conditions continue to present uncertainties that could impact our business environment.
