Tiny (TINY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $51.0 million, up $2.1 million from Q1 2024 and 7% year-over-year, driven by a large enterprise licensing deal and growth in Software and Apps.

• New CEO and CFO appointed, both bringing significant M&A and capital markets experience.

• First earnings call under new leadership, emphasizing transparency and improved disclosure.

• Completed a $20.6 million equity raise and acquired 100% of MediaNet Solutions, a SaaS-focused education software business.

• Focus on operational highlights, debt reduction, and strategic acquisitions.

Financial highlights

• Revenue grew 4% sequentially from Q1 and 7% year-over-year, with some positive impact from the timing of the RTO in Q2 2023.

• Recurring revenue reached $9.6 million (CAD 9.6 million), 19% of total revenue, a slight year-over-year increase.

• Significant debt repayment of $16.0 million (CAD 60 million) in the quarter, reducing net debt to $98.7 million (just under CAD 100 million).

• EBITDA for Q2 2024 was $4.9 million, with margin at 10%, improved by operational efficiencies.

• Adjusted free cash flow was $(3.6) million, impacted by timing of a large enterprise deal and debt payments.

Outlook and guidance

• Expectation of cleaner year-over-year and quarter-to-quarter comparisons starting in Q3.

• Continued focus on operational efficiency, debt reduction, and recurring revenue growth.

• Targeting net debt to Adjusted EBITDA ratio in the 2.5x range over the next year.

• Opportunistic approach to acquisitions, prioritizing high-confidence, accretive deals and recurring revenue platforms.

• Plans to continue reducing leverage and target long-term free cash flow generation.