Flexion Mobile (FLEXM) Q3 2024 earnings summary

Executive summary

• Revenue grew 20% year-over-year to GBP 17.8m in Q3 2024, with gross profit up 54% to GBP 3.9m, driven by strong performance in Audiencly and new game launches.

• Adjusted EBITDA rose 15% to GBP 1.4m, but operating loss increased to GBP 0.6m; EPS was -2.12 pence.

• Cash and cash equivalents increased to GBP 12.4m, with no interest-bearing liabilities.

• Key launches included Candy Crush Saga and new agreements with major developers; positive regulatory changes in the US and EU are expected to benefit Flexion's business model.

Financial highlights

• Q3 revenue up 20% year-over-year to GBP 17.8m; gross profit up 54% to GBP 3.9m; adjusted EBITDA up 15% to GBP 1.4m.

• Operating loss increased to GBP 0.6m; EPS at -2.12 pence; operating cash flow at GBP -0.8m.

• For the first nine months, revenue rose 17% to GBP 54.6m, gross profit up 53% to GBP 11.3m, adjusted EBITDA up 78% to GBP 3.9m.

• Marketing Services revenue grew 47% year-over-year in Q3; IAP revenue up 17% year-over-year.

• Gross profit margin increased to 22.0% from 17.1% year-over-year.

Outlook and guidance

• Q4 revenue expected in the range of USD 26-30m, with strong pipeline from new titles and influencer marketing campaigns.

• Anticipates continued growth in 2025, supported by regulatory changes and new service offerings.