Solid Clouds (SOLID) H2 2024 earnings summary

Executive summary

• Solid Clouds hf, a multiplayer computer game developer, reported a net loss of ISK 404.5 million for 2024, compared to a loss of ISK 83.1 million in 2023.

• Revenue increased by 1,264% from January to December 2024, with significant growth in Monthly and Daily Active Users.

• The company completed a share capital increase and a convertible bond issuance to support operations and repay related party loans.

• Starborne Frontiers saw increased advertising, a PC release, Steam launch, and a major expansion in 2024.

Financial highlights

• Total assets at year-end 2024 were ISK 1,174.7 million, down from ISK 1,217.7 million in 2023.

• Stockholders' equity stood at ISK 1,072.8 million at year-end 2024, compared to ISK 1,175.1 million in 2023.

• Cash balance at year-end 2024 was ISK 14.0 million.

• Game revenue for 2024 was ISK 99.2 million, up from ISK 22.7 million in 2023.

• Advertising expenses in 2024 totaled ISK 134.2 million, with projected multi-year revenue from these ads estimated at ISK 187.2 million.

Outlook and guidance

• The main 2025 objective is to increase advertising while maintaining acceptable returns, with plans to expand to new ad platforms and additional language support.

• Long-term goal is to achieve a 400% return on ad spend within five years.

• Additional capital raising efforts are ongoing to fund operations through 2025.