11 Bit Studios (11B) Q2 2024 earnings summary

Executive summary

• Revenue rose 24.16% year-over-year to PLN 30.76 million, driven by new publishing titles The Invincible, The Thaumaturge, and INDIKA, with third-party games making up 52% of total revenue.

• Operating expenses increased 49% year-over-year, mainly due to preparations for upcoming proprietary releases Frostpunk 2 and The Alters, resulting in an operating loss of PLN 5.35 million and a net loss of PLN 0.48 million.

• Net loss was significantly influenced by the profit reported by associate Fool's Theory Sp. z o.o.

• Frostpunk 2 (PC) is set for release on 20 September 2024, with The Alters to follow; both will be available on Game Pass at launch.

• Marketing efforts intensified, with Frostpunk 2 and The Alters receiving strong anticipation and industry awards.

Financial highlights

• Revenue: PLN 30.76 million (up 24.16% year-over-year).

• Operating loss: PLN 5.35 million (compared to a profit of PLN 0.63 million a year earlier).

• Net loss: PLN 0.48 million (compared to net profit of PLN 4.01 million a year earlier).

• EBITDA: PLN -2.43 million (compared to PLN 2.94 million a year earlier).

• Net cash from operating activities: PLN 19.70 million (up from PLN 2.93 million a year earlier).

Outlook and guidance

• Management expects record-breaking years for 2024-2026, based on anticipated strong sales of Frostpunk 2, The Alters, and Project 8.

• Ongoing expansion of development and publishing teams, with a strategy to release one proprietary title every few quarters and three to four third-party games annually.

• The company aims to grow faster than the global gaming market, leveraging a diversified portfolio and international reach.