Kinda Brave (BRAVE) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 reached 0.4 MSEK, up from 0.0 MSEK in Q2 2023, mainly from Distant Bloom and Go Fight Fantastic; no flagship title revenue yet.

• EBITDA for Q2 was -3.0 MSEK (Q2 2023: -2.3 MSEK); net result was -3.7 MSEK (Q2 2023: -2.5 MSEK).

• Company listed shares on Nasdaq First North Growth Market and completed an oversubscribed share issue during the quarter.

• Signed a publishing agreement post-quarter for the flagship title "Hela" valued at $4.5M, with first milestone payment of $300,000 received.

Financial highlights

• H1 2024 net sales totaled 1.3 MSEK (H1 2023: 0.0 MSEK); EBITDA was -5.8 MSEK (H1 2023: -4.3 MSEK); net result -7.5 MSEK (H1 2023: -4.6 MSEK).

• Q2 operating expenses rose to 12.5 MSEK (Q2 2023: 4.7 MSEK), mainly due to increased personnel and 5.1 MSEK in extraordinary costs related to the listing.

• Cash flow from operations before working capital changes was -12.3 MSEK (Q2 2023: -4.8 MSEK); cash at period end was 10.8 MSEK (Q2 2023: 0.3 MSEK).

• Share issue raised 36 MSEK, of which 16.6 MSEK was for loan conversion.

• Capitalized development work in Q2 was 8.8 MSEK (Q2 2023: 2.4 MSEK), mainly for game development.

Outlook and guidance

• Expectation of substantial revenue increase in Q3 2024 as milestone payments from the flagship title "Hela" begin to be recognized.

• Company is focusing on organizational efficiency and development of the flagship project.