Readly International (READ) Q3 2024 earnings summary

Executive summary

• Achieved adjusted operating margin of 8% and strong cash flow in Q3 2024, with double-digit revenue growth accelerating to 19% year-over-year, adjusted for VAT, currency, and divestments.

• Focus remains on growth via investments in product development and marketing to sustain market position and value for subscribers and publishers.

Financial highlights

• Q3 2024 revenue reached SEK 180.5 million, up 6.5% year-over-year; excluding divestments, revenue rose 16.9%.

• Gross profit increased 13% to SEK 73.7 million, with gross margin improving to 40.8% from 38.5% year-over-year.

• Adjusted EBITDA grew 65.6% to SEK 19.8 million, with margin up to 11.0% from 7.1% in Q3 2023.

• Net result for Q3 was SEK 104.7 million, compared to a loss of SEK 4.5 million in Q3 2023, aided by recognition of a SEK 93.3 million deferred tax asset.

• Cash flow from operating activities improved to SEK 12.6 million in Q3 and SEK 48.7 million for the nine months, up from negative SEK 30.6 million in the prior year period.

Outlook and guidance

• Continued focus on growth through product development and marketing investments.

• No formal forecasts issued for future performance.