Acast (ACAST) Q2 2024 earnings summary

Executive summary

• Net sales grew 24% year-over-year in Q2 2024 to SEK 478 million, driven by strong performance in North America (+26%) and Europe (+25%).

• Gross margin improved to 39%, up from 36% a year ago, supported by product mix and SaaS revenues.

• EBITDA margin improved to -2% from -11% year-over-year, reflecting progress toward profitability.

• Number of listens declined 15% due to Apple's iOS17 update, but ARPL rose 45% to SEK 0.43.

• Strong cash position with SEK 712 million at quarter-end.

Financial highlights

• Organic net sales growth was 22% after adjusting for currency effects.

• Gross profit increased by 35% year-over-year, reaching SEK 185 million.

• Operating expenses rose 11%, mainly from investments in North America, FX impacts, and incentive programs.

• Net loss for the quarter was SEK -26.9 million, an improvement from SEK -41.7 million in Q2 2023.

• Operating cash flow for the last twelve months was positive at SEK 14 million.

Outlook and guidance

• On track to achieve positive EBITDA for the full year 2024, driven by sales growth, margin expansion, and cost control.

• North America expected to continue outpacing group growth for the full year, though Q3 presents the toughest comps.

• No radical changes expected in cost structure; measured investments will continue.

• Management remains focused on profitable growth despite ongoing ad market uncertainty.