Thinkific Labs (THNC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 12% year-over-year to $16.2 million, driven by strong adoption of Thinkific Commerce (up 69%) and Thinkific Plus (up 28%).

• Net income was $0.9 million, a turnaround from a net loss of $2.1 million in Q2 2023.

• Adjusted EBITDA was $0.9 million, positive for the fourth consecutive quarter, improving by $2.1 million year-over-year.

• Record new customer bookings in Thinkific Plus and accelerated adoption of Thinkific Commerce at quarter-end.

• Key executive hires and investments in go-to-market and product teams to accelerate growth.

Financial highlights

• Subscription revenue reached $14.0 million, up 7% year-over-year; ARR grew to $57.0 million, also up 7%.

• Commerce revenue was $2.2 million, up 69% year-over-year; GMV was $111 million (up 4%), and GPV was $44 million (up 40%).

• ARPU increased 10% year-over-year to $155 per month.

• Adjusted EBITDA was $0.9 million (5% margin), with operating expenses down 15% year-over-year to $12.3 million.

• Cash and equivalents at quarter-end were $48.6 million, down due to share repurchases.

Outlook and guidance

• Q3 2024 revenue expected between $17.0–$17.3 million, representing 14–16% year-over-year growth.

• Continued investment in growth, with a commitment to maintaining positive adjusted EBITDA.

• Expect customer count to stabilize in 2024 and contribute to growth in 2025.

• Targeting Thinkific Commerce penetration rate of 68% by end of 2025 (44% at Q2 exit).