Deezer (DEEZR) H1 2024 earnings summary

Executive summary

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

• Subscriber base reached 10.5M, up 13.7% year-over-year, with Partnerships subscribers up 37.1% and Direct in France up 3.2%.

• Adjusted EBITDA loss reduced to €5M from €13.1M in H1 2023; positive free cash flow of €7.3M delivered.

• Net loss halved to €19.4M from €38.4M year-over-year, with EPS improved to €(0.16) from €(0.35).

• Strong cash position at €65.1M at end of June 2024; new CEO Alexis Lanternier starts September 2024, new CFO Carl starts August 2024.

Financial highlights

• Revenue grew 14.9% year-over-year to €267.9M, an all-time high for H1; Partnerships revenue up 39.2%, Direct revenue up 4.6%.

• Adjusted gross profit rose 24.6% to €64.5M; adjusted gross margin improved to 24.1%, up 1.9 points year-over-year.

• Adjusted EBITDA loss improved by €8.1M to -€5M; margin improved from -5.6% to -1.9%.

• Net loss reduced to €19.4M from €38.4M; EBIT loss improved to €21.2M from €42.5M.

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

Outlook and guidance

• 2024 revenue growth target confirmed at 10%; adjusted EBITDA loss now expected better than €(10)M.

• Positive free cash flow expected for full year 2024.

• On track for positive adjusted EBITDA in 2025.