Remedy (REMEDY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached EUR 17.9 million, up 128.6% year-over-year, driven by development fees from Control 2 and Max Payne 1 & 2 Remake, including a significant one-time payment from Annapurna.

• EBITDA for Q3 2024 was EUR 6.6 million, with operating profit at EUR 2.4 million, a marked improvement from the previous year.

• Strategic partnerships with Annapurna and a EUR 15 million convertible loan from Tencent were secured to support development and self-publishing ambitions.

• Remedy acquired full rights to the Control franchise and retains sequel rights to Alan Wake 2, enabling self-publishing and strategic expansion.

• Announced Alan Wake 2's second expansion and FBC: Firebreak, a new self-published title for 2025.

Financial highlights

• Q3 2024 operating profit margin was 13.4%, up from -70.0% in Q3 2023; cash flow from operations was EUR 6.6 million.

• Cash position at quarter-end was EUR 49.0 million; net cash position at end of September 2024 was EUR 24.4 million.

• Year-to-date revenue increased 65% to EUR 39.0 million; operating profit for Q1–Q3 2024 was EUR -2.7 million, a significant improvement from the prior year.

• Capitalized development expenses rose 24% year-over-year, mainly due to FBC: Firebreak and Control 2.

• Earnings per share for Q3 2024 was EUR 0.14, compared to EUR -0.33 in Q3 2023.

Outlook and guidance

• Revenue and EBIT are expected to increase in 2024, though EBIT will remain negative due to the shift to self-publishing.

• Self-publishing of Control 2 and FBC: Firebreak will reduce short-term development fees but is expected to create greater long-term value.

• Long-term prospects focus on expanding the Control and Alan Wake franchises and leveraging the Remedy Connected Universe.