Storytel Group (STORY) Q3 2024 earnings summary

Executive summary

• Achieved record-high group revenue of 954 million SEK, adjusted EBITDA of 178 million SEK (18.7% margin), and operational cash flow of 146 million SEK in Q3 2024, marking the best quarterly financial performance to date.

• Subscriber base grew 10% year-over-year to 2.36 million, with 30% growth in Finland and churn at an all-time low.

• Strategic focus on balancing growth and profitability, with disciplined marketing and cost efficiency measures.

• Bodil Eriksson Torp became CEO on October 1, 2024, succeeding Johannes Larcher.

Financial highlights

• Group net sales increased by 7% (8% at constant exchange rates) to 954 million SEK year-over-year.

• Adjusted gross profit margin improved by 4.6 percentage points to 45.7%.

• Adjusted EBITDA rose 76% year-over-year to 178 million SEK, with a margin of 18.7%.

• Operational cash flow reached 146 million SEK; adjusted operating profit improved to 105 million SEK (11% margin).

• Net profit for Q3 was 55 million SEK (vs. -2 million SEK last year); EPS at 0.67 SEK.

Outlook and guidance

• 2024 full-year revenue growth guidance revised to around 8% due to disciplined marketing spend amid strong competition.

• Adjusted EBITDA margin guidance raised to around 15%, operational cash flow at least 10% of revenues.

• On track to reach or be close to 2026 midterm targets for Adjusted EBITDA margin (>15%) and operational cash flow (>10%) already in 2024.