Adverty (ADVT) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 reached SEK 18.2 million, up 218% year-over-year; H1 revenue totaled SEK 34.9 million, up from SEK 12.6 million.

• Gross profit for Q2 was SEK 6.3 million, a 215% increase year-over-year; gross margin remained stable at 35%.

• EBITDA for Q2 was positive at SEK 1.6 million, compared to SEK -2.4 million in Q2 2023.

• EBIT for Q2 was SEK -0.3 million, a significant improvement from SEK -3.9 million in Q2 2023.

• Net result for Q2 was SEK -1.3 million, compared to SEK -4.3 million in Q2 2023.

Financial highlights

• H1 2024 net sales were SEK 34.9 million, up from SEK 12.6 million year-over-year.

• H1 net result improved to SEK -2.4 million from SEK -10.1 million year-over-year.

• Earnings per share for H1 was SEK -0.07, compared to SEK -0.32 in H1 2023.

• Cash flow for Q2 was SEK -5.4 million; cash at period end was SEK 1.5 million.

• Investments in H1 totaled SEK 3.6 million, mainly in capitalized development costs.

Outlook and guidance

• Launch of In-Play 2.0 with new clickable ad formats expected in two phases, starting August 2024.

• Anticipates significant revenue potential from "click-to-web" and "click-to-install" ad formats.

• Ongoing growth in legacy In-Play 1.0 format, but future focus is on In-Play 2.0.