Tonies (TNIE) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached EUR 147m, up 30% YoY, with 51% from international markets, led by North America growth of 63%.

• EBITDA positive for the first time in a seasonally weaker H1 since IPO, with an EBITDA margin of 2.0% and adjusted EBITDA margin of 2.6%.

• DACH region remains highly profitable with 18.2% EBITDA margin; international expansion continues, including launches in Australia & New Zealand.

• Major licensing deals with Disney and Paramount expand the product pipeline and competitive advantage.

• Free cash flow improved to EUR -32m from EUR -39m in H1 2023, with EUR 40m cash available including unused credit lines.

Financial highlights

• Revenue: EUR 147m (+30% YoY); DACH EUR 72m (+9%), North America EUR 55m (+63%), Rest of World EUR 20m (+50%).

• Adjusted EBITDA margin: 2.6% (+0.8pp YoY); EBITDA margin: 2.0% (+4.4pp YoY).

• Contribution margin: 37.4% (down 3.7pp YoY); free cash flow: EUR -32m (improved by EUR 7m YoY).

• Gross margin improved to 67.2% from 65.8% YoY; COGS down due to lower prices and logistics efficiency.

• Over 7.3 million Tonieboxes sold globally; >70% remain active.

Outlook and guidance

• FY 2024 revenue guidance: >EUR 480m (>33% YoY), North America >EUR 200m (>42% YoY).

• Adjusted EBITDA margin expected at 6-8%; free cash flow to turn positive (>EUR 10m) in 2024.

• North America projected to become the largest market; further profitability improvements expected from gross margin and operating leverage.