Asetek (ASTK) Q4 2024 earnings summary

Executive summary

• Q4 2024 SimSports revenue grew 86% year-over-year to $4.2 million, driven by new product launches and distribution agreements.

• Q4 liquid cooling revenue reached $11.1 million, the highest quarter of the year.

• Full year 2024 group revenue was $52.5 million, with EBITDA break-even, in line with guidance.

• Rights issue completed in January 2025 raised $10.5 million to strengthen financial position and support SimSports investments.

• Liquid Cooling segment saw a 16% YoY decline in sealed loop sales in Q4.

Financial highlights

• Q4 2024 revenue was $15.4 million, down 7% from Q4 2023; full year revenue declined 37% to $52.5 million from $76.3 million in 2023.

• Q4 group gross margin was 41.9%; full year gross margin 41.8%, down from 45%-47% in prior years.

• Q4 EBITDA was $560,000 (positive), but down from $2.2 million in Q4 2023; full year adjusted EBITDA was $271,000.

• Q4 operating income was a loss of $1 million; full year operating loss was $19.2 million.

• FY 2024 net loss was $23.9 million, impacted by special items and non-cash write-downs.

Outlook and guidance

• 2025 revenue expected in the range of $52 million–$58 million; adjusted EBITDA margin of 3%–5%.

• Liquid cooling revenue guidance: $40 million–$43 million, gross margin 40%–45%.

• SimSports revenue guidance: $12 million–$15 million, gross margin 30%–35%.

• Gradual revenue increase expected towards year-end 2025 and into 2026, driven by mass-market product launches and expanded distribution.