Cettire (CTT) H2 2024 earnings summary

Executive summary

• Gross revenue rose 81% to $978.3 million and sales revenue increased 78% to $742.3 million year-over-year, with adjusted EBITDA of $32.5 million, up 11% year-over-year.

• Active customers grew 64% to 692,000, with 61% of gross revenue from repeat customers and over 1 million annual orders processed.

• Ended FY24 with $79 million in cash, up from $46 million at June 2023, and maintained zero financial debt.

• Launched a direct platform in mainland China and continued global expansion with enhanced localisation features.

• Enhanced organisational capabilities, including board expansion and increased hiring in engineering, operations, and customer service.

Financial highlights

• Delivered margin increased 63% year-over-year to $155 million, representing 21% of sales revenue.

• Adjusted EBITDA margin was 4.4%, down from 7.0% in FY23.

• Statutory NPAT was $10.5 million, while Adjusted NPAT was $18.2 million.

• Paid acquisition cost as a percentage of sales rose to 9.5% due to aggressive marketing.

• Average order value increased to $798 from $747 year-over-year.

Outlook and guidance

• FY25 will emphasize profitability over growth, with Q1 sales revenue up ~20% year-over-year through July and August.

• Marketing investment in Q1 is expected to be lower than FY24, with sequential improvement in delivered margin and refund rates anticipated.

• No precise full-year guidance provided, but management expects continued improvement in profitability and a more moderate growth trajectory.

• Strategic priorities include profitable growth, continued global expansion, localisation, and enhanced organisational capability.