VerticalScope (FORA) Q3 2024 earnings summary

Executive summary

• Achieved record 122 million monthly active users (MAU) in Q3 2024, up 21% year-over-year, with 65 million registered members.

• Q3 2024 revenue grew 15% year-over-year to $17.8 million, driven by a 22% increase in digital advertising revenue and strong user engagement.

• Adjusted EBITDA increased 9% to $7.4 million, with a 42% margin, and net income reached $1.2 million, reversing a prior-year loss.

• Free cash flow rose 7% to $6.4 million, with an 86% conversion rate.

• Focus on authentic, user-generated content and niche communities, supported by a proprietary SaaS platform and robust demand amid AI-driven shifts in user behavior.

Financial highlights

• Q3 2024 revenue: $17.8 million, up 15% year-over-year; TTM revenue: $67 million.

• Digital advertising revenue grew 22% year-over-year, now 86% of total revenue; programmatic advertising up 36% and 71% of ad revenue.

• E-commerce revenue was $2.1 million in Q3, down 20% year-over-year but flat sequentially, representing 12–14% of total revenue.

• Adjusted EBITDA margin was 42% in Q3 and TTM, with free cash flow conversion at 86% in Q3 and 94% TTM.

• Net income of $1.2 million, or $0.06 per share, compared to a net loss last year.

Outlook and guidance

• Expect continued organic revenue growth in advertising for Q4, with strong October momentum and double-digit total revenue growth visibility.

• MAU growth expected to continue into Q4 and 2025, with ongoing focus on acquisitions and emerging opportunities in AI monetization and LLM licensing.

• Anticipate Adjusted EBITDA margins of 40% or better in Q4.