Beyond Frames (BEYOND) Q2 2024 earnings summary

Executive summary

• Achieved record-breaking H1 2024 sales of 100,789 KSEK, up 66.4% year-over-year, with Q2 being the second strongest in company history despite a softer quarter.

• Recurring revenues, especially from Ghosts of Tabor, have bolstered growth and reduced reliance on single major launches.

• Six fully-funded titles are in the pipeline for launch through H1 2026, including sequels and games based on major IPs.

• Profit after financial items was -8,832 KSEK in Q2 and -8,166 KSEK for H1, impacted by higher depreciation from ramped-up development.

• Cash and cash equivalents at quarter-end were 14,319 KSEK, supporting a 12-month survival forecast.

Financial highlights

• H1 2024 sales reached 100,789 KSEK, up 66.4% year-over-year; Q2 sales were 41,174 KSEK, down from 43,291 KSEK in Q2 2023.

• H1 EBITDA was 7,459 KSEK, up from 4,111 KSEK last year; Q2 EBITDA was -551 KSEK, down from 4,360 KSEK in Q2 2023.

• EBIT showed an operating loss of 8,6 million SEK for both Q2 and H1, mainly due to the depreciation model.

• Cash flow from operating activities before working capital changes was 7.9 million SEK for the half-year.

• Investments in intangible assets in Q2 totaled 6,612 KSEK.

Outlook and guidance

• Focus on improving margins and achieving positive cash flow, with profitability targeted through premium product launches.

• Six fully-funded titles, including sequels and major IP games, are expected to drive growth through H1 2026.

• Q3 is expected to be a softer period for revenues, with a new title launching at the end of the quarter, likely impacting Q4 more.

• Recurring revenues from existing titles provide a stable baseline as new games launch.