Remedy (REMEDY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 16.2% year-over-year to €10.3 million, with H1 2024 revenue up 33.7% to €21.1 million, driven by development fees from Max Payne 1 & 2 remake.

• Operating loss for Q2 narrowed to €-3.2 million, with EBITDA improving to €-2.4 million and positive operating cash flow of €0.9 million.

• Alan Wake 2's Night Springs expansion launched to strong reviews, recouping over 80% of its development and marketing costs, and physical editions are set for Q4.

• Remedy acquired full publishing rights to the Control franchise, increasing strategic flexibility and enabling self-funding of development.

• The company is transitioning to a more balanced business-to-consumer model, aiming for regular game launches and a growing portfolio of live games.

Financial highlights

• Q2 2024 revenue: €10.3 million (+16.2% YoY); H1 2024 revenue: €21.1 million (+33.7% YoY).

• Q2 operating loss: €-3.2 million (improved from €-4.8 million YoY); H1 operating loss: €-5.3 million (improved from €-10.4 million YoY).

• Q2 EBITDA: €-2.4 million (improved from €-4.1 million YoY); H1 EBITDA: €-3.6 million (improved from €-8.9 million YoY).

• Cash and cash equivalents at end of Q2: €22.4 million; net cash: €19.0 million.

• Capitalized development expenses up 77% YoY, mainly for Condor and Control 2.

Outlook and guidance

• Revenue and operating profit expected to increase in 2024, but growth depends on publishing model decisions for Control 2 and Condor.

• Further guidance to be provided after business model decisions for key titles.