Nitro Games (NITRO) Q3 2024 earnings summary

Executive summary

• Achieved four consecutive profitable quarters, with revenue for Jan–Sep 2024 growing 40% year-over-year to €8.34M and strong EBITDA improvement.

• Focus remains on cross-platform action and shooter games, expanding both own IP and third-party collaborations, with growing brand recognition.

• B2B service business deepens long-term collaborations, notably with Digital Extremes and Netflix, and is preparing key titles for scale-up.

• Cash position remains strong at €2.1M as of September 30, 2024, with significant loan repayments and no new capitalized development costs.

• Board member Morgan Habedank resigned and Nordisk Games sold its 26% stake (6.5M shares), marking a transition to greater independence.

Financial highlights

• Q3 2024 revenue was €2.75M, up 7% year-over-year; nine-month revenue reached €8.34M, up 40% year-over-year.

• Q3 2024 EBITDA was €754K (from -€1.52M); nine-month EBITDA was €1.86M, up 174% year-over-year.

• Operating profit for Q3 2024 was €313K, reversing a loss of €-1.88M in Q3 2023.

• Jan–Sep 2024 EBIT margin improved to 6.4% (from -56.8%), EBITDA margin to 22.3% (from -42.1%).

• No new development costs capitalized in 2024; depreciation for Jan–Sep was €1.3M.

Outlook and guidance

• Preparing Autogun Heroes for scale-up with ongoing updates, user acquisition, and scalability efforts.

• Exploring expansion of IPs to new platforms and broader audiences, with a focus on multiplatform projects and stable growth.

• Management targets continued profitability and growth, with cost control, business optimization, and expanding B2B services.