Team Internet Group (TIG) Q4 2024 earnings summary

Executive summary

• Transition from Google AdSense for Domains to Related Search on Content (RSOC) impacted short-term margins but is expected to drive long-term growth.

• The group operates in three main segments: Search, Domains/Identity & Software (DIS), and Comparison, each with distinct recurring revenue models and operational KPIs.

• Diversification across segments has reduced reliance on search, creating a more balanced and resilient business.

• AI, proprietary data, and platform partnerships are leveraged to optimize user engagement and conversion, especially as younger audiences shift to social media.

• Gross revenue declined 4.1% to USD 802.8m and net revenue fell 1.9% to USD 187.5m year-over-year.

Financial highlights

• Gross revenue for 2024 was $803 million, down 4% year-over-year, with net revenue at $187.5 million, down 2%.

• Adjusted EBITDA was $91.9 million, a 5% decrease from FY 2023; operating profit dropped to $8.2 million due to $36 million impairment charges; excluding these, operating profit was $44.2 million.

• Adjusted operating cash flow rose 7% year-over-year to $99.1 million, with cash conversion improving to 108% of operating profit.

• Net debt ended 2024 at $96.4 million, down from a mid-year peak of $109.9 million.

• Adjusted EPS was $21.49, down from $23.27; basic EPS fell to -6.98 cents from 9.20 cents.

Outlook and guidance

• 2025 consensus projects adjusted EBITDA between $60 million and $62 million, with $20 million+ from Search and $40 million+ from DIS and Comparison.

• All three divisions expected to grow in parallel, aiming to return to $90 million EBITDA with more balanced contributions and double-digit earnings growth from 2026.

• Margins in search expected to recover from mid-single digits to historical levels as RSOC is optimized.