Adverty (ADVT) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was KSEK 6,618, a 16% decrease year-over-year, mainly due to macroeconomic uncertainty and advertiser caution.

• EBITDA for Q1 2025 was KSEK -2,810, and EBIT was KSEK -4,873, both reflecting continued investment and market headwinds.

• Net loss for the quarter was KSEK -5,683, with EPS at SEK -0.03, compared to KSEK -5,234 and SEK -0.16 in Q1 2024.

• Focus remains on innovation, with the launch of SDK 5 and the first web-based in-game ad solution, expected to drive future growth.

• The company withdrew its previous 2024 guidance due to market conditions and technical challenges with new product rollouts.

Financial highlights

• Gross margin for Q1 2025 was 29%, down from 32% in Q1 2024.

• Cash flow for the quarter was KSEK -7,539, with cash and equivalents at KSEK 9,583 at period end.

• Investments totaled KSEK 1,431, mainly in capitalized development costs.

• Equity at quarter-end was KSEK 7,057, up from KSEK 3,290 a year earlier.

Outlook and guidance

• Previous financial forecasts for 2024 have been withdrawn due to ongoing market uncertainty and technical issues with VAST (Video) rollout.

• Long-term focus remains on profitability and growth through new ad formats and improved technology integration.