Mediobanca, through its Research Area, presented the first survey on the main Italian WebSoft, namely those companies active in software development, web services, and digital platforms. The study analyzes data from the five-year period 2019-2024 for 171 companies belonging to 119 groups, with revenues exceeding €50 million and at least 30 employees, and provides an interesting comparison with major global players in the same business categories, which are being driven to much greater heights by artificial intelligence. The Italian landscape is indeed mixed: rising revenues reflect a consistently growing ecosystem, but challenges with operating profitability and financial stability.
Web Software in Italy: A Growing Ecosystem, But with Pros and Cons
In 2024 the aggregate turnover of Italian WebSoft reached 43,4 billion, up 9,2% on 2023 and +97,4% over 2019, employing over 235 people (+3,1% over 2023 and +50,0% over 2019). This growth was fueled by M&A transactions and the entry of private equity funds, which accelerated the sector's consolidation. Grocery & Food Delivery operators were the most dynamic, with revenues up 277,7% over 2019, followed by e-commerce (+211,8%) and Internet Media & Services (+163,5%). Growth in other sectors was more moderate, with Travel, Booking & Services operators posting +57,2%. Home delivery and e-commerce companies also stood out in terms of employment, with above-average increases: +751% and +170,8% over 2019, respectively.
In the five-year period 2019-2024 the companies with the highest growth in turnover and employment are those controlled by fundsOperating profitability, however, shows a declining trend: the aggregate EBIT margin fell from 8,0% in 2019 to 7,0% in 2024, a V-shaped trend linked to the pandemic. Over the five-year period, the significant increase in revenue was accompanied by a more than proportional increase in costs, penalizing margins: the lowest point was reached in 2022 with an EBIT margin of 6,8%. In the following years, operators committed to reducing costs to restore profitability to pre-pandemic levels. Travel, Booking & Services companies performed best (12,2% in 2024), followed by Software & IT services (8,2% in 2024) and System Integrators and Hosting & Trust service providers (8,0%).
The worst performances are those of companies controlled by private equity funds
The Grocery & Food Delivery sector is the only one with negative performances throughout the five-year period: a trend linked to the nature of the business—swelled by the pandemic—and the type of operators operating in Italy, consisting almost exclusively of subsidiaries of international groups, characterized by lower margins. Based on the ownership structure the best performances are recorded by private companies (controlled by families or founding members) with an EBIT margin of 9,9% in 2024. This is the only profitability indicator that has grown over the period (+0,8 pp on 2019).
In the five-year period 2019-2024, the financial strength of Italian WebSoft companies weakened: financial leverage increased from 86,7% in 2019 to 103,3% in 2024. The deterioration is mainly linked to the numerous M&A transactions completed in the post-pandemic period, which led to an increase in debt and a reduction in net income, due to increased operating costs. Companies controlled by private equity funds, both domestic and foreign, show the highest levels of debt and the lowest liquidity. This reflects the typical strategy of these operators, based on leveraged buyoutsPublicly controlled companies have the lowest financial leverage (46,8%), while the best liquidity-to-debt ratio is achieved by companies controlled by private individuals/families, which have sufficient liquidity to repay approximately half of their financial debt.
Outlook 2025: Artificial Intelligence Fills the Sail of Global Web Software
The Mediobanca Research Area has also estimated double-digit growth in the aggregate turnover of the main global operators in the WebSoft sector for 2025, equal to +12,6% compared to 2024. The best performances are recorded in Cloud (+20%) and home delivery services (+19,4%), followed by digital payment services (+14,8%). Cloud confirms itself as the engine of growth, supported by the growing adoption of PaaS and SaaS solutions, driven by the ongoing development of generative Artificial Intelligence, which is set to be the true disruptive force in the coming years. Growth isn't limited to revenue: on the profitability front, net operating margin (EBIT) is expected to increase by 20,2%, while net earnings are expected to accelerate by 27,3%, reaching record levels.
These results are accompanied by the increase in the workforce (+4,6%) and, above all, investments (+66,0%), signs of a strategy focused on expansion and innovation, supported by the adoption and development of AI-based solutions. In Italy, the trend is positive but more modest: revenues for Italian WebSoft companies are expected to grow by 6,6%, with EBIT improving by 12,8% and net profits by 5,8%. Also on the investment front there is a significant boost (+21,5%), while employment is expected to increase by +3,8%. These data confirm a process of consolidation and digitalization, albeit at a more moderate pace than the global giants, reflecting the smaller scale and fragmentation of the domestic market.
