Acroud (ACROUD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was EUR 9.5 million, down 8% year-over-year, with organic decline of 6.1%. Adjusted EBITDA fell 9% to EUR 1.5 million, but reported EBITDA more than doubled to EUR 1.2 million due to lower non-recurring costs. Profit after tax improved to EUR -426 thousand from EUR -21.3 million, reflecting absence of last year's EUR 20 million impairment. NDCs dropped 61% to 45,806, mainly due to a strategic shift in user acquisition. Cash flow from operations was EUR 1.0 million, down from EUR 1.7 million.

Financial highlights

• H1 2024 revenue was EUR 19.0 million, down 3% year-over-year; organic decline was 0.8%. Adjusted EBITDA for H1 was EUR 2.7 million, down 28%, while reported EBITDA rose 89% to EUR 5.1 million. H1 profit after tax was EUR 2.4 million, compared to a EUR -21.3 million loss last year. Adjusted EPS for Q2 was EUR -0.003, improved from EUR -0.005. Net debt/adjusted EBITDA (LTM) increased to 2.9x from 2.2x.

Outlook and guidance

• Management remains focused on operational efficiency and restructuring/refinancing to enable future growth. Strategic shift prioritizes high-quality NDCs over volume, aiming for higher EBITDA. The company targets a net debt/adjusted EBITDA ratio of 2.5x or lower by December 2025. Organic EBITDA growth target of 20% annually for 2023–2025 is currently not met, with H1 2024 at -17%.