Adverty (ADVT) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months increased 56% year-over-year to KSEK 41,204, with Q3 revenue at KSEK 6,324, reflecting a focus on launching In-Play 2.0 and programmatic video.

• Net loss for the nine-month period improved to KSEK -7,545 from KSEK -11,676 year-over-year; Q3 net loss was KSEK -5,188 compared to KSEK -1,534 in Q3 2023.

• Gross margin for Q3 was 26%, down from 40% in Q3 2023, due to increased traffic and resource allocation for product launch.

• Customer receivables decreased 6% sequentially, and payment inflows accelerated into Q4.

• The company is preparing for a rights issue of approximately SEK 43 million and secured a bridge loan of SEK 6 million to support growth.

Financial highlights

• Q3 2024 revenue: KSEK 6,324 (Q3 2023: KSEK 13,698); nine-month revenue: KSEK 41,204 (2023: KSEK 26,320).

• Q3 EBITDA: KSEK -2,211 (Q3 2023: KSEK 647); nine-month EBITDA: KSEK 837 (2023: KSEK -5,973).

• Q3 EBIT: KSEK -4,132 (Q3 2023: KSEK -986); nine-month EBIT: KSEK -4,784 (2023: KSEK -10,608).

• Q3 net result: KSEK -5,188 (Q3 2023: KSEK -1,534); nine-month net result: KSEK -7,545 (2023: KSEK -11,676).

• Cash at period end: KSEK 1,420 (Q3 2023: KSEK 3,194); interest-bearing debt: KSEK 23,290 (Q3 2023: KSEK 16,319).

Outlook and guidance

• In-Play 2.0 launch expected to drive significant growth in 2025 and 2026, with positive feedback and early revenue uplift from publishers.

• Rights issue and bridge loan to provide capital for accelerated business development and achieving communicated growth targets.