Tiny (TINY) Q4 2024 earnings summary

Executive summary

• Achieved Adjusted EBITDA of $31.0 million in FY2024, up 13% year-over-year, with Q4 Adjusted EBITDA of $10.1 million, a 38% increase over Q3 2024.

• Revenue for FY2024 was $194.2 million, a 5% increase over FY2023; recurring revenue reached $38.7 million, up 30% year-over-year and now 20% of total revenue.

• Net debt reduced by 10% to $94.1 million at year-end, with $24.5 million in repayments.

• Strategic focus on organic growth, cost rationalization, and recurring revenue, with key acquisitions including Repeat, MediaNet, and WholesalePet; pending acquisition of Serato.

• Leadership transition completed with new CEO and CFO.

Financial highlights

• Adjusted EBITDA margin improved to 16% for FY2024 and 21% in Q4 2024.

• Free cash flow was $9.3 million, a turnaround from $(2.6) million in FY2023; adjusted free cash flow post debt servicing was $9.4 million.

• Net Debt to Adjusted EBITDA ratio improved to 3.0x at year-end, with a target below 2.5x.

• $2.2 million distribution received from Tiny Fund I.

• Cash on hand at year-end was $22.9 million.

Outlook and guidance

• Management expects further improvements in Adjusted EBITDA and cash flow in 2025, driven by organic initiatives, cost rationalization, and recent acquisitions.

• Anticipates increased distributions from Tiny Fund I as capital is fully deployed.

• Targeting leverage below 2.5x, ideally under 2x, in the mid to long term.

• Pending acquisition of Serato Audio Research Ltd. in Q1 2025 to further strengthen recurring revenue base.

• Evaluating additional tuck-in and platform acquisition opportunities.