Deezer (DEEZR) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 results with 14.9% revenue growth to €267.9 million, driven by ARPU increases, subscriber growth, and strong partnership expansion.

• Subscriber base reached 10.5 million, up 13.7% year-over-year, with partnerships up 37.1% and direct growth in France.

• Adjusted EBITDA loss narrowed to €5.0 million from €13.1 million, with positive free cash flow of €7.3 million and a strong cash position of €65.1 million at June-end.

• Net loss reduced to €19.4 million from €38.4 million year-over-year; EPS improved to €(0.16) from €(0.35).

• Leadership transitions: Alexis Lanternier appointed CEO effective September 2, 2024, and Carl de Place as CFO effective August 1, 2024.

Financial highlights

• Revenue reached €267.9 million (+14.9% YoY); Partnerships revenue up 39.2% to €86.9 million; Direct revenue up 4.6% to €171.5 million.

• Adjusted gross profit rose 24.6% to €64.5 million; margin improved to 24.1% (+1.9 pts YoY).

• Adjusted EBITDA margin improved to (1.9)% from (5.6)% YoY.

• Free cash flow positive at €7.3 million, a €28.9 million improvement year-over-year.

• Cash and cash equivalents at €65.1 million; net cash position at €47.9 million as of June 30, 2024.

Outlook and guidance

• 2024 revenue growth target confirmed at 10%.

• Adjusted EBITDA loss for 2024 now expected to be better than €(10) million, improved from previous guidance.

• Positive free cash flow expected for full year 2024; on track for positive adjusted EBITDA in 2025.