Raketech Group (RAKE) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was EUR 12.3 million, down 45.9% year-on-year, with adjusted EBITDA at EUR 3.2 million, a 46.2% decrease year-on-year; full-year revenue reached EUR 61.2 million, with adjusted EBITDA of EUR 15.7 million and EBITDA of EUR 14.7 million.

• A non-cash impairment charge of EUR 48.5 million was recognized in Q4, mainly for pre-IPO non-core assets.

• Four new strategic partnerships were announced in the affiliation marketing vertical, now accounting for nearly 50% of segment revenue.

• Strategic focus shifted to cost savings, operational efficiency, and expanding partnerships; operating model review delivered 29% cost savings in Q4 2024 (excluding publisher costs) compared to Q1 2024, with headcount reduced by 34%.

• Free cash flow for 2024 was EUR 14.7 million, in line with EBITDA, supporting upcoming earnout payments.

Financial highlights

• Q4 adjusted EBITDA margin was 26.2%; full-year adjusted EBITDA margin was 25.7%.

• Q4 net loss was EUR 46.8 million, mainly due to impairment; adjusted profit for the period was EUR 0.1 million.

• Sub-affiliation revenue in Q4 was EUR 5.2 million, down 54% year-on-year; AffiliationCloud delivered 74% organic growth year-on-year.

• Gross margin for sub-affiliation was 20% in Q4.

• Cash and cash equivalents at year-end were EUR 4.5 million, down from EUR 13.5 million.

Outlook and guidance

• Q1 2025 performance in affiliation marketing is in line with Q4, but overall lower revenues expected due to seasonality and reduced operator marketing budgets.

• Sub-affiliation started slower in January but is picking up in February.

• A more comprehensive strategic update and further details on AffiliationCloud ambitions will be provided with the Q1 2025 report.