edyoutec (WIG) Q3 2024 earnings summary

Executive summary

• Transitioned to a SaaS-based business model, focusing on EdTech and gaming verticals, aiming for long-term growth and financial independence.

• Acquired MyFirstApp Group S AB and Oy 10Monkeys Ltd, adding annual revenues of at least 3.5 MSEK with high profitability.

• Launched and marketed key apps, including 10Monkeys, MyFirstApps, and King Royale, with further product launches planned.

• German operations delivered positive EBITDA for the fifth consecutive quarter, contributing 1.9 MSEK in the first nine months.

Financial highlights

• Q3 net revenue: 3,740 TSEK (down from 3,979 TSEK year-over-year); nine months: 12,658 TSEK (down from 16,636 TSEK year-over-year).

• Q3 EBITDA: -558 TSEK (vs. -410 TSEK); nine months: -1,022 TSEK (vs. -4,739 TSEK).

• Q3 net result after financials: -4,138 TSEK (vs. -3,575 TSEK); nine months: -10,483 TSEK (vs. -14,473 TSEK).

• Q3 cash flow: 1,128 TSEK (vs. -2,995 TSEK); nine months: -184 TSEK (vs. 76 TSEK).

• Investments for nine months: -7,819 TSEK (vs. -10,552 TSEK).

Outlook and guidance

• SaaS model expected to drive sustainable growth and cash flow positivity, supported by new acquisitions and a large marketing database.

• Ongoing cost reduction programs and focus on scaling SaaS services and global market expansion.

• German operations expected to meet EBITDA target of at least 5 MSEK, aided by new acquisitions.