Thinkific Labs (THNC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $16.2 million, up 12% year-over-year, driven by strong growth in Commerce (up 69%) and Plus (up 28%) segments.

• Record new customer bookings in Plus and milestone $2 billion in cumulative GMV were achieved.

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

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

• Key executive hires and investments in go-to-market and product teams are expected to accelerate growth in the second half of 2024.

Financial highlights

• Commerce revenue surged 69% to $2.2 million; subscription revenue grew 7% to $14.0 million year-over-year.

• ARR reached $57 million, up 7% year-over-year.

• Adjusted EBITDA positive at $0.9 million; net income was $0.9 million; cash and equivalents at $48.6 million as of June 30, 2024.

• Gross margin stable at 75%; commerce gross margin improved to 39%.

• ARPU increased 10% to $155/month; total paying customers increased 2% to 34.9 thousand.

Outlook and guidance

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

• Commitment to maintaining positive Adjusted EBITDA while increasing investment in growth levers.

• Customer count expected to stabilize in 2024 and contribute to growth in 2025.

• Continued growth in GMV and Commerce penetration anticipated, with a target of 68% penetration by end of 2025.