Flexion Mobile (FLEXM) Q4 2024 earnings summary

Executive summary

• Works with major game publishers to monetize games outside Google Play and Apple App Store, focusing on alternative app stores and channels.

• Achieved $100 million annual turnover, a 50x increase since IPO, and posted GBP 76.5m annual revenue for 2024, up 9%.

• Portfolio includes over 30 top-grossing titles such as Candy Crush, Monopoly GO, World of Tanks, War Machines, War Robots, Gossip Harbor, and Candy Crush Solitaire.

• Recently completed a record year with growth in top line, gross profits, and cash flow, and signed new agreements with Electronic Arts.

• Strategic focus on larger, higher-revenue games and D2C service offering, with strong industry partnerships and regulatory tailwinds.

Financial highlights

• Core distribution business was flat in dollar terms year-over-year, slightly down in pounds, while annual revenue grew 9% to GBP 76.5m.

• Q4 revenue was GBP 21.9m, up 23% sequentially but down 7% year-over-year; Q4 gross profit was GBP 3.6m.

• Gross profits and cash balance increased by $2 million over the year; year-end cash and equivalents at GBP 13.1m, with no debt.

• Adjusted EBITDA for 2024 was GBP 5.0m, up 33%; Q4 adjusted EBITDA was GBP 1.3m.

• Best year ever despite industry-wide challenges.

Outlook and guidance

• Focused on signing bigger games and expanding distribution channels, including new entrants like Epic Games Store and Microsoft.

• Investing heavily in D2C (direct-to-consumer) offerings, expecting positive impact on growth next year.

• Launching a new service proposition and brand, with expectations for continued growth in 2025.

• Expecting Q1 2025 sales in the range of USD 21–24m, with most newly signed games launching by end of Q1.

• Anticipates continued margin pressure in 2025 due to launch of larger, lower-margin games, but confident in long-term growth from D2C and regulatory changes.