eEducation Albert (ALBERT) Q3 2024 earnings summary

Executive summary

• Focused on dual B2B and B2C revenue streams in core education subjects, leveraging gamification and curriculum-based products across the Nordics, UK, and US.

• Strategic review led to prioritizing key products (Albert Junior, Strawbees, Sumdog, Film & School) and core markets (Nordics, UK, US), with resource reallocation and restructuring in France and Kids MBA.

• Operational momentum in Q3, especially in customer acquisition and sales, with B2C summer campaign exceeding targets and B2B reducing churn and increasing invoiced sales.

• Invoiced sales for Q3 2024 increased by 11% year-over-year to 44,803k SEK, but net revenue declined by 5% to 41,949k SEK due to deferred revenue recognition from subscriptions.

• EBITDA for Q3 was -8,373k SEK, down from -2,969k SEK last year, reflecting higher marketing expenses and lower net revenue.

Financial highlights

• Invoiced sales up 11% year-over-year in Q3, reflecting strong sales momentum, while net revenue declined 5% due to delayed revenue recognition from annual and multi-year subscriptions.

• EBITDA for Q3 was SEK -8 million, impacted by higher marketing spend and lower recognized revenue from earlier periods.

• Net revenue for Jan–Sep 2024 was 133,051k SEK, a 1% decrease year-over-year.

• Cash and cash equivalents at period end were 59,384k SEK, down from 94,465k SEK a year earlier.

• Cash flow from operating activities for Jan–Sep was -14,075k SEK, compared to -12,790k SEK last year.

Outlook and guidance

• Committed to reaching positive EBITDA in 2025 and positive cash flow in 2026 with existing cash reserves.

• Cost reductions and revenue recognition from recent sales are expected to contribute to positive EBITDA in 2025.

• No further major restructuring planned; focus is now on scaling profitable segments and markets.

• Continued investment in marketing and customer success to drive growth in both B2B and B2C, with new market launches planned.

• Further launches of Albert Junior are planned for 2025, with continued focus on profitable growth and cash flow improvement.