Sleep Cycle (SLEEP) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 was SEK 65.4 million, up 12.9% year-over-year, driven by stable subscription growth and higher ARPU, with 898,000 subscribers at period end.

• EBIT margin reached 32% in Q2, reflecting strong profitability and cost efficiency.

• Management team completed, with new CFO and CPO, and focus on user acquisition, engagement, and monetizing data and technology.

• Strategic initiatives and product development are expected to drive further growth in the second half of 2024.

• Dividend of SEK 46.6 million paid in Q2 2024.

Financial highlights

• Q2 2024 net revenue was SEK 65.4 million, up from SEK 58.0 million in Q2 2023, with FX-adjusted growth at 10.5%.

• EBIT for Q2 2024 was SEK 21.0 million, a 65.4% increase year-over-year, with a margin of 32%.

• First half 2024 net revenue grew 13% to SEK 128.9 million; adjusted FX growth was 10.8%.

• Cash flow from operations in Q2 was SEK 16.2 million; liquidity at period end was SEK 120.4 million.

• Dividend of SEK 46.6 million paid in April 2024.

Outlook and guidance

• Growth target to double revenue in 3–4 years, aiming for 25% EBIT margin and 40–60% dividend payout of net profit annually.

• Margin expected to normalize around 25% as investments in growth are made when strategic bets gain traction.

• New features and product enhancements expected in Q3, with ongoing work on iOS 18 integration.

• Anticipates results from new growth strategy towards the end of 2024.

• No new significant risks or uncertainties identified during the period; risk profile unchanged from 2023 annual report.