Tiny (TINY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $51.0 million, up $2.1 million from Q1 2024 and 7% year-over-year, driven by a large enterprise licensing deal and growth in Software and Apps.

• New CEO and CFO appointed, both bringing significant M&A and capital markets experience, with leadership transition completed in June and July 2024.

• Completed a $20.6 million equity raise and acquired 100% of MediaNet Solutions, a SaaS-focused education software business.

• Debt repayment of $16.0 million reduced net debt to $98.7 million at quarter-end.

• First earnings call under new leadership emphasized transparency, operational highlights, and improved disclosure.

Financial highlights

• Revenue for the six months ended June 30, 2024, was $99.9 million, up from $83.8 million in 2023.

• EBITDA for Q2 2024 was $4.9 million; Q2 2023 EBITDA included a $42.1 million one-time gain.

• Recurring revenue in Q2 2024 was $9.6 million, 19% of total revenue, up from 18% in Q2 2023.

• Adjusted free cash flow post debt servicing in Q2 2024 was $(3.6) million, impacted by timing of debt payments.

• Cash on hand at June 30, 2024 was $22.4 million; total debt outstanding was $121.1 million, down from $131.2 million at year-end.

Outlook and guidance

• Focus on strengthening the balance sheet, investing in organic growth, and increasing cost discipline.

• Targeting net debt to Adjusted EBITDA ratio in the 2.5x range over the next year.

• Strategic focus on acquiring recurring revenue and cash flow positive platforms, with opportunistic, accretive acquisitions.

• Expectation of cleaner year-over-year and quarter-to-quarter comparisons starting in Q3.

• Ongoing efforts to manage and reduce debt levels.