Overactive Media (OAM) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of CAD 9.9 million and full-year revenue of CAD 27 million, up 72% year-over-year, driven by strategic acquisitions and new revenue streams.

• Integrated KOI and Riders acquisitions, expanding EMEA presence and portfolio, with immediate accretive impact on revenue and adjusted EBITDA.

• Reported a net loss of $629K for 2024, a significant improvement from a $12.5M net loss in 2023, aided by franchise payable extinguishments and acquisitions.

• Secured new and renewed commercial partnerships, including the first LEC naming rights deal and major brands like AMD and Monster Energy.

• Restructured LEC franchise agreement, eliminating future obligations and securing full ownership of the slot.

Financial highlights

• Q4 revenue grew 134% year-over-year to CAD 9.9 million, with full-year revenue at CAD 27 million, a 72% increase from 2023.

• Gross profit rose to CAD 16.8 million (62% margin), up from CAD 10.4 million, though Q4 margin declined to 54% due to lower-margin business integration.

• Net loss narrowed to $629K from $12.5M year-over-year, aided by $11.5M decrease in franchise payables.

• Adjusted EBITDA loss for Q4 improved 21% year-over-year to CAD 554,000; full-year adjusted EBITDA loss improved 42% to CAD 3.6 million.

• Cash and cash equivalents at year-end were $6.8M, down from $13.9M, reflecting acquisition and investment activities.

Outlook and guidance

• Focus for 2025 is on scalability through digital and high-margin verticals, growth in established markets, and profitability through disciplined execution.

• Management expects continued revenue growth in EMEA from recent acquisitions, with projected 50% revenue growth in VALORANT Champions Tour EMEA for 2025 and 2026.

• Cash flow forecasts support at least 12 months of liquidity, with no material uncertainties regarding going concern.

• Infrastructure and operational capacity in place to support efficient scaling and margin improvement.