Tourn International (TOURN) Q3 2024 earnings summary

Executive summary

• Profitability measures initiated in Q4 2023 led to a 5% improvement in Agency and 51% in NAGATO profitability compared to Q3 2023.

• Revenue remains below 2023 levels, but market signals suggest a more favorable outlook for 2025.

• Strategic investments in Baud and the planned China launch impacted results by -2.6 MSEK.

• Focus remains on long-term growth and improved profitability, with expectations of a positive EBITDA and cash flow in Q4 2024.

Financial highlights

• Q3 2024 net revenue: 14.3 MSEK, down from 22.1 MSEK in Q3 2023.

• EBITDA for Q3 2024: -4.6 MSEK (Q3 2023: -2.9 MSEK); Adjusted EBITDA: -1.9 MSEK (Q3 2023: -2.0 MSEK).

• Earnings per share Q3 2024: -0.46 (Q3 2023: -0.45).

• Cash position at quarter-end: 10.8 MSEK, down 8.7 MSEK during the quarter.

• Equity ratio: 66% (Q3 2023: 58%).

Outlook and guidance

• Market recovery expected in 2025, with Agency targeting 40-60% revenue growth and NAGATO aiming for even higher growth with improved profitability.

• Long-term goal to reach 500 MSEK in revenue by 2025 with at least a 10% profit margin.

• Full establishment in the US, Europe, and Asia planned in coming years.

• Q4 2024 expected to deliver positive cash flow and EBITDA in core operations.