Broadpeak (ALBPK) H1 2024 earnings summary

Executive summary

• H1 2024 results aligned with annual objectives, showing resilience despite sector headwinds and a strong prior-year base in APAC.

• Revenue declined 5.0% year-over-year to €17.2m, with over 90% generated internationally and a direct presence in 23 countries.

• Recurring revenue grew 23% to €7.4m, now 43.2% of total revenue.

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

• Operating loss widened to -€6.6m, and net loss increased to -€4.4m.

Financial highlights

• Revenue: €17.2m (down 5.0% year-over-year); APAC revenue fell 61.8%, while Americas grew 10.9% and EMEA 3.6%.

• Recurring revenues increased to 43.2% of total, up from 33.4% in H1 2023.

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

• Free cash flow improved to -€0.9m, a significant recovery from -€5.1m a year earlier.

• EBITDA before research tax credit: -€4.2m; after RTC: -€1.9m.

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.

• Orders already signed expected to drive Q3 growth, with further gains in Multicast ABR, Advanced CDN, Cloud PVR, and Dynamic Ad Insertion.

• Cost-saving measures and SaaS/software momentum anticipated to positively impact profitability.

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