SOZAP (SOZAP) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 was MSEK 3.7, down 21% year-over-year, mainly due to lower Questopia revenue from reduced user acquisition.

• EBITDA improved to MSEK 0.7 from MSEK -1.2, reflecting cost control and a cost-saving program exceeding targets.

• Operating result (EBIT) was MSEK -2.3, an improvement from MSEK -3.9 in Q1 2024.

• Cash flow from operating activities turned positive at MSEK 0.4, up from MSEK -1.8 last year.

• No significant events occurred during or after the reporting period.

Financial highlights

• Net revenue decreased 21% year-over-year to MSEK 3.7; comparable currency decrease was 22%.

• EBITDA margin improved to 20% from -25% in Q1 2024.

• Earnings per share were SEK -0.10, up from SEK -0.34 year-over-year.

• Cash and cash equivalents at quarter-end were MSEK 3.8, up from MSEK 1.8.

• Average Revenue Per Daily Active User (ARPDAU) was USD 0.071, down 14% year-over-year.

Outlook and guidance

• Questopia continues to generate revenue with a positive trend; Fishing Tour shows strong potential ahead of a major Q2 update.

• Cost-saving program exceeded expectations, supporting improved cash flow and aiming for cash flow neutrality before Fishing Tour marketing investments.

• Board assesses sufficient financing for the next four quarters.