SOZAP (SOZAP) Q4 2024 earnings summary

Executive summary

• Net revenue for 2024 increased 17% year-over-year to MSEK 17.5, driven by a full year of Questopia revenue, partially offset by lower Armed Heist revenue.

• EBITDA improved to MSEK 0.1 from MSEK -3.0 in 2023, reflecting cost savings and operational efficiencies.

• Operating result (EBIT) for 2024 was MSEK -11.3, down from MSEK -8.9 in 2023, with a net loss of MSEK -11.3.

• Cash flow from operating activities improved to MSEK -0.3 from MSEK -3.0 in 2023; cash and cash equivalents at year-end were MSEK 4.7.

• No dividend proposed for 2024; focus remains on launching Fishing Tour and achieving cash flow neutrality.

Financial highlights

• Q4 2024 net revenue was MSEK 4.3, down 10% year-over-year; full-year net revenue was MSEK 17.5, up 17%.

• Q4 EBITDA was MSEK 0.6 (vs. -1.6 in Q4 2023); full-year EBITDA was MSEK 0.1 (vs. -3.0 in 2023).

• Q4 EBIT was MSEK -2.3 (vs. -3.4); full-year EBIT was MSEK -11.3 (vs. -8.9).

• Earnings per share for 2024 were SEK -0.65 (vs. -0.91 in 2023).

• ARPDAU for 2024 increased 27% to USD 0.089; MAU averaged 0.8 million.

Outlook and guidance

• Questopia continues to generate revenue; Fishing Tour is set for launch in spring 2025, with expectations to prove its revenue potential.

• Collaboration with Supersonic and cost-saving measures are expected to further improve financials and support cash flow neutrality before Fishing Tour marketing investments.

• The company believes it has sufficient financing for the next four quarters.