Tonies (TNIE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 21% year-over-year to EUR 95 million, driven by strong international expansion, especially in North America, and product innovation including Book Tonies and Lalalinos.

• Over 500,000 new Toniebox families and 8.3 million new Tonies added in Q3, with the global user base now spanning over 100 countries and more than 7.8 million Tonieboxes sold to date.

• Strategic focus on internationalization, margin expansion, own content, product mix, and operating leverage is delivering tangible results, with North America and UK retail presence rapidly expanding.

• Management strengthened with the appointment of Ginny McCormick as Chief Experience Officer to unify brand, product, and content leadership.

• New content initiatives, including Book Tonies and Lalalinos, are broadening the addressable market and improving margins.

Financial highlights

• Q3 2024 group revenue: EUR 95.3 million (+20.9% YoY); nine-month revenue: EUR 242.1 million (+26.2% YoY).

• North America Q3 revenue up 40% YoY to EUR 37 million; Rest of World up 52% to EUR 16 million; DACH region up 1% to EUR 42 million.

• Tonies figurine sales grew at a 33% annual rate in 9M 2024, with 8.3 million units sold in Q3 and product mix shifting toward figurines.

• International business now represents 53% of total revenue.

• Free cash flow expected to exceed EUR 10 million for the year, up from -EUR 5 million last year.

Outlook and guidance

• FY 2024 guidance confirmed: group revenue above EUR 480 million, North America revenue above EUR 200 million, with adjusted EBITDA margin expected between 6% and 8%.

• Q4 anticipated to generate 50% of annual revenue, with strong visibility and preparedness for peak season.

• North America set to become the largest market in Q4.

• Guidance assumes no material deterioration in consumer sentiment.