Sleep Cycle (SLEEP) Q3 2024 earnings summary

Executive summary

• Maintained market leadership in sleep solutions with 15,000–20,000 daily downloads, 80% organic, and over 1 million nightly active users.

• Achieved 8.4% year-over-year net revenue growth in Q3 2024, driven by subscriber growth and partnerships.

• Ended Q3 2024 with 915,000 paying subscribers, an increase of 28,000 year-over-year.

• Maintained a strong EBIT margin of 31.3% in Q3 2024, exceeding financial targets.

• Strategic initiatives and new partnerships, including with MyFitnessPal, are expected to strengthen market position.

Financial highlights

• Q3 2024 net revenue was SEK 65.9m (up 8.4% year-over-year); currency-adjusted growth was 9.9%.

• EBIT for Q3 2024 reached SEK 20.6m, with a margin of 31.3%.

• Cash flow from operations for Q3 2024 was SEK 11.9m; liquidity at period end was SEK 130m.

• Jan–Sep 2024 revenue grew 11.7% to SEK 194.8m; EBIT was SEK 55.4m (28.5% margin); adjusted EBIT margin 31.4%.

• ARPU in Q3 2024 was SEK 280, with FX-adjusted ARPU at SEK 284.

Outlook and guidance

• Midterm target to double revenue in 3–4 years and maintain annual EBIT margin around 25%.

• 2024 EBIT margin now expected to be approximately 28%, above the previous 25% target.

• Dividend policy remains at 40–60% of net profit annually.

• Continued focus on sales, user growth, and EBIT; cautious spending until clear growth signals emerge.

• Management remains optimistic but does not declare a new growth trajectory yet.