Acast (ACAST) Q2 2024 earnings summary

Executive summary

• Net sales grew 24% year-over-year in Q2 2024 to SEK 478 million, with organic growth at 22% after currency adjustments, led by North America (+26%) and Europe (+25%).

• Gross margin improved to 39% from 36% a year ago, supported by product mix and Podchaser's contribution.

• EBITDA margin improved to -2% from -11% last year, reflecting a 9 percentage point year-over-year improvement.

• Operating cash flow was nearly breakeven at SEK -1 million, with a strong cash position of SEK 712 million at quarter-end.

• The company remains on track to achieve positive EBITDA for the full year 2024.

Financial highlights

• Organic net sales growth was 22% after adjusting for currency effects.

• Gross profit increased by 35% year-over-year, reaching SEK 185 million.

• ARPL rose 45% year-over-year to SEK 0.43, despite a 15% decline in listens due to iOS17 measurement changes.

• Net loss for the quarter was SEK -26.9 million, an improvement from SEK -41.7 million in Q2 2023.

• Operating cash flow improved to SEK -1 million in Q2; LTM operating cash flow was positive SEK 14 million.

Outlook and guidance

• The company expects North America to continue outpacing group growth for the full year.

• On track to achieve EBITDA profitability for the full year 2024, driven by sales growth, margin expansion, and cost control.

• Q3 is expected to present the toughest year-over-year growth comparison.

• No specific guidance on Q3 ad trends, but positive signals noted in some markets.

• Management remains focused on profitable growth despite ongoing ad market uncertainty.