The Arena Group (AREN) Q4 2024 earnings summary

Executive summary

• Achieved second consecutive profitable quarter with $7.2M income from continuing operations in Q4 2024, up from $4.8M in Q3 2024.

• Q4 2024 revenue from continuing operations was $36.2M, an 8% sequential increase over Q3 2024.

• Adjusted EBITDA for Q4 2024 reached $13.0M, up from $11.1M in Q3 2024.

• FY 2024 loss from continuing operations narrowed to $7.7M from $37.2M in FY 2023; Adjusted EBITDA doubled to $27.0M.

• Management expects profitability in every quarter of 2025, citing success of the 'competitive publishing' model.

Financial highlights

• Q4 2024 net income was $6.9M, compared to a net loss of $5.6M in Q4 2023.

• FY 2024 net loss was $100.7M, primarily due to $93M loss from discontinued operations.

• Basic and diluted EPS from continuing operations was $0.15 in Q4 2024, versus $(0.10) in Q4 2023.

• Gross profit for Q4 2024 was $19.1M on $36.2M revenue; gross margin improved sequentially.

• Adjusted EBITDA for FY 2024 was $27.0M, up from $13.2M in FY 2023.

Outlook and guidance

• Management expects to be profitable in every quarter of 2025, driven by the rollout of the competitive publishing model.

• Early results from Men's Journal, Parade, and The Street in 2025 are described as very promising.