Ionik (INIK) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $44.8M, up 26% year-over-year, driven by 2023 acquisitions and organic growth.

• Adjusted EBITDA rose 52% to $5.5M year-over-year, with 62% sequential growth from Q1 2024.

• Net loss after tax from continuing operations narrowed to $0.3M from $4.8M in Q2 2023.

• Closed sale of substantially all mobile games portfolio, results reflected in discontinued operations.

Financial highlights

• Gross profit increased 20% to $16.7M (37% margin) from $13.9M (39% margin) in Q2 2023; sequentially up 16%.

• Adjusted Free Cash Flow was $3.5M (65% conversion), impacted by $1.9M in income taxes; excluding taxes, $5.4M (99% conversion).

• Year-to-date cash flow from operations reached $1.7M, up from $0.6M at June 30, 2023.

• Cash balance at June 30, 2024 was $6.8M; no draw on $10M revolver, $30.8M available on $105M term loan.

Outlook and guidance

• Management remains confident in executing growth objectives for the second half of 2024.

• Focus on integrating acquisitions and executing strategic M&A to scale operations.