Overactive Media (OAM) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw significant normalized revenue growth and improved year-to-date Adjusted EBITDA, reflecting disciplined execution and strategic focus.

• Achieved 49% year-to-date revenue growth to $17.2M and positive net income of $239K for the nine months ended September 30, 2024, compared to a net loss of $11.2M last year.

• Strategic acquisitions of Riders and KOI, renegotiated league agreements, and entry into VALORANT EMEA ecosystem expanded presence in Europe and Latin America, enhancing brand value and fan engagement.

• Restructured league agreements eliminated over CAD 37 million (over $37M) in liabilities and all future franchise obligations, securing full franchise ownership and reducing risk.

• Partnerships with global brands like Pepsi, AMD, SCUF, Bell, and Ecoembes reinforce market influence and industry leadership.

Financial highlights

• Q3 2024 total revenue was CAD 6.9 million ($6.8M), up 14% year-over-year; normalized revenue rose 72%.

• Year-to-date total revenue reached CAD 17.2 million ($17.2M), a 49% increase; normalized revenue up 59%.

• Adjusted gross profit for Q3 was CAD 5.1 million ($5.1M) with a 74% margin; normalized adjusted gross profit improved from CAD 2.8 million to CAD 5.1 million.

• Adjusted EBITDA for Q3 was break-even ($4K); normalized basis improved from a CAD 1.2 million loss to a gain.

• Cash and equivalents as of September 30, 2024, were CAD 8.9 million ($8.9M); net working capital improved to CAD 9.4 million, up 321% year-over-year.

Outlook and guidance

• Focus remains on leveraging scalable revenue models, operational agility, and innovation to drive sustainable, profitable growth.

• Debt-free, with a diversified global presence and strong brand partnerships supporting future expansion.

• Recent restructuring and acquisitions position the company for continued profitability and global expansion.