Broadpeak (ALBPK) H1 2024 earnings summary

Executive summary

• Revenue declined 5.0% year-over-year to €17.2M in H1 2024, with strong growth in the Americas (+10.9%) and EMEA (+3.6%), but a sharp decline in APAC (-61.8%) due to project delays and a strong prior-year base.

• Recurring revenues (Maintenance & SaaS) grew 23% to €7.4M, now 43.2% of total revenue, driven by SaaS momentum and 15 new SaaS clients.

• Gross margin improved to 80.6% from 78.9% year-over-year.

• Net loss widened to -€4.4M, impacted by seasonality, lower activity, higher financial charges, and increased amortization.

• Strategic focus on monetization, SaaS expansion, and environmental sustainability to drive the 2024–2027 roadmap.

Financial highlights

• Revenue: €17.2M (-5% YoY); Americas up 10.9%, APAC down 61.8%, EMEA up 3.6%.

• Gross margin: €13.8M (80.6% of revenue, +1.7 pts YoY).

• EBITDA: -€4.2M (vs. -€4.3M YoY); Adjusted EBITDA: -€1.85M.

• Net result: -€4.4M (vs. -€3.7M YoY).

• Free cash flow improved to -€0.9M, reflecting better working capital management.

Outlook and guidance

• Full-year 2024 targets maintained, with revenue growth expected to return in Q3 and positive free cash flow targeted for the year.

• Continued momentum in SaaS and software offerings, especially Dynamic Ad Insertion, Multicast ABR, Advanced CDN, and Cloud PVR.

• Cost-saving measures and further reductions planned for H2 are anticipated to positively impact profitability.

• 2027 targets: revenue above €50M, 50% recurring revenue, and EBITDA margin of 15%.