Tiny (TINY) Q1 2025 earnings summary

Executive summary

• Q1 2025 results showed strong momentum across strategic priorities, including the acquisition and closing of Serato, a global DJ software leader, and integration of Stamped, Repeat, and KnoCommerce under new leadership.

• Adjusted EBITDA reached $9.7 million, up 41% year-over-year, with margin above 20% for the second consecutive quarter, reflecting cost discipline and organic growth.

• Revenue for Q1 2025 was $48.1 million, a 6% increase year-over-year when excluding divested businesses.

• Dribbble launched new Projects & Services offerings, generating additional transaction and subscription revenue.

• Net loss narrowed to $4.0 million from $8.9 million in Q1 2024, primarily due to lower operating expenses and FX fluctuations.

Financial highlights

• Adjusted EBITDA margin improved to above 20% in Q1 2025 from 14% in Q1 2024.

• Free cash flow in Q1 2025 was $3.0 million, up 168% year-over-year, with adjusted free cash flow post debt servicing at $1.9 million, up 82% year-over-year.

• Recurring revenue reached $9.8 million, 20% of total revenue, up from 19% in Q1 2024, mainly due to MediaNet acquisition.

• Tiny Fund I revenue increased 13% year-over-year to $17 million in Q1 2025; Tiny received $1 million in distributions.

• Net debt to adjusted EBITDA ratio improved to 2.7x at Q1 end, nearing the 2.5x target.

Outlook and guidance

• Serato acquisition expected to increase recurring revenue by nearly 70%, total revenue by over 20%, and improve adjusted EBITDA and cash flow starting Q2 2025.

• Recurring revenue ratio projected to rise to 27% in 2025 with Serato's inclusion.

• Management remains focused on further EBITDA growth, margin improvement, and flexible capital allocation through 2025.

• Distributions from Tiny Fund I anticipated to continue throughout 2025.

• Continued focus on cost discipline, margin improvement, and debt reduction to further strengthen the financial profile.