Spotlio (SPOT) Q4 23/24 earnings summary

Executive summary

• Q4 FY24 revenue was $2.2M and FY24 revenue was $7.3M, reflecting an 11% and 10% year-over-year decline, mainly due to North American ski market weakness, partially offset by European growth.

• Annual recurring revenues reached $7.7M with 214 resort customers as of April 2024.

• Significant cost optimization actions delivered over $2.5M in annual run-rate savings, reducing personnel and operating expenses by 22% and 26% respectively.

• Adjusted EBITDA improved to -$2.9M for FY24, a 41% improvement from the prior year, after excluding $1M in one-off severance and legal costs.

• Gross profit margin held steady at 63% for both Q4 and FY24, reflecting a mix of higher-margin SaaS and lower-margin transactional revenues.

Financial highlights

• Q4 EBITDA was -$0.5M, an improvement from -$0.7M in the prior year.

• FY24 adjusted EBITDA was -$2.9M, compared to -$4.9M in the previous year.

• Q4 gross profit was $1.4M; FY24 gross profit was $4.6M.

• Net loss for Q4 was $1.5M; FY24 net loss was $7.1M, both improved from prior year.

• Cash position at the end of Q4 was $0.6M, reflecting the drawdown of the first tranche of a debt facility.

Outlook and guidance

• Cost rationalization initiatives are on track, with annualized personnel cost base now at $4.3M after >$2.5M in annualized savings.

• Management expects cost base optimization to set a path to profitability in FY25.

• Cash position lower than expected due to top-line weakness, but ongoing cost controls are expected to support future improvements.