Flexion Mobile (FLEXM) Q2 2024 earnings summary

Executive summary

• Revenue grew 14% year-over-year to GBP 17.7m in Q2 2024, with gross profit up 51% to GBP 3.6m and adjusted EBITDA surging 1236% to GBP 1.1m.

• Operating loss increased to GBP 0.8m, and EPS was negative at -2.22 pence, reflecting higher administrative expenses and amortisation.

• Key launches included EverMerge and Marvel Contest of Champions, with new agreements signed with Jam City and King.

• Cash position strengthened to GBP 13.9m, with no interest-bearing debt.

• Distribution revenue in H1 grew 25% in USD constant currency, and the company expects a busy second half with a strong game lineup.

Financial highlights

• Q2 revenue: GBP 17.7m (+14% YoY), gross profit: GBP 3.6m (+51% YoY), adjusted EBITDA: GBP 1.1m (+1236% YoY).

• Operating loss: GBP 0.8m (vs. profit of GBP 0.03m YoY), net loss after tax: GBP 0.9m (vs. GBP 0.25m YoY).

• Gross profit margin rose to 20.1% (from 15.3% YoY); IAP gross profit margin increased to 18.9%.

• Operating cash flow: GBP 0.6m (down from GBP 0.9m YoY); cash and equivalents: GBP 13.9m.

• H1 revenue: GBP 36.0m (+13% YoY), gross profit: GBP 7.5m (+55% YoY), adjusted EBITDA: GBP 2.7m (+231% YoY).

Outlook and guidance

• Q3 2024 sales expected in the range of USD 22m–25m, with a healthy sales pipeline and more big game signings anticipated.

• Focus remains on expanding partnerships, especially with King and other top publishers, and leveraging regulatory changes favoring alternative distribution.