SOZAP (SOZAP) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 increased 24% year-over-year to MSEK 4.7, driven by Questopia's global launch.

• EBITDA improved to MSEK 0.2 from MSEK -0.7, while EBIT declined to MSEK -2.7 from MSEK -2.1.

• Rights issue in June raised MSEK 7.8, securing funding for Fishing Tour's launch and operational goals.

• Cost-saving program yielded annualized savings of MSEK 7, supporting the goal of cash flow neutrality by Q4.

Financial highlights

• Q2 net revenue: MSEK 4.7 (up 24% YoY); H1 net revenue: MSEK 9.4 (up 33% YoY).

• Q2 EBITDA: MSEK 0.2; H1 EBITDA: MSEK -1.0.

• Q2 EBIT: MSEK -2.7; H1 EBIT: MSEK -6.6.

• Q2 EPS: SEK -0.21; H1 EPS: SEK -0.54.

• Q2 cash flow from operations: MSEK 1.8; cash and equivalents at period end: MSEK 8.8.

Outlook and guidance

• Questopia's revenue and content updates are expected to optimize cash flow.

• Fishing Tour shows strong potential; company targets cash flow neutrality before marketing investments by Q4.

• Board assesses current funding as sufficient for the next four quarters.