Kinda Brave (BRAVE) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 reached 0.3 MSEK, up from 0.0 MSEK in Q3 2023, driven by sales from launched titles in Uppsala-based studios.

• EBITDA for Q3 was -7.1 MSEK, compared to -3.0 MSEK last year, reflecting increased personnel costs for game development.

• Net result for Q3 was -8.4 MSEK, down from -3.2 MSEK in Q3 2023, mainly due to higher costs and reduced capitalized work.

• Signed a major publishing agreement for flagship title "Hela" with MY.GAMES, valued at $4.5M, with milestone payments received.

• Successfully completed a directed share issue, raising 12.7 MSEK before costs, with proceeds received after the quarter.

Financial highlights

• Q3 net sales: 0.3 MSEK (0.0); YTD net sales: 1.6 MSEK (0.0).

• Q3 EBITDA: -7.1 MSEK (-3.0); YTD EBITDA: -12.9 MSEK (-7.3).

• Q3 net result: -8.4 MSEK (-3.2); YTD net result: -15.9 MSEK (-7.9).

• Cash at period end: 0.4 MSEK (0.7), with 12.7 MSEK from share issue and $400,000 milestone received after quarter.

• Capitalized development work in Q3: 5.8 MSEK (3.6), reflecting ongoing investments in game development.

Outlook and guidance

• Management expects continued strong interest in "Hela" and sees good prospects for the title.

• Operational efficiency measures in smaller studios will reduce staff, with full effect from Q1 2025.

• Company remains selective in evaluating acquisition opportunities.