Q2 2024 summary: Raketech’s journey through a tough quarter
Raketech’s Q2 2024 saw some financial challenges, yet the company remains committed to long-term growth. Here’s a breakdown of the key points from the quarter:
- Revenues for Q2 2024 totaled EUR 17.0 million, slightly down from EUR 17.6 million last year. This was mainly due to strong sub-affiliation growth being offset by a decline in affiliation marketing.
- EBITDA came in at EUR 4.4 million, compared to EUR 5.5 million in the previous year. The decrease was expected and largely due to lower performance from the Casumba assets.
- The impact of Google’s update was particularly strong on the Casumba assets. In response, Raketech quickly strengthened the team to improve performance.
- A comprehensive business audit was completed, leading to several initiatives. These include enhanced content, technical product improvements, SEO optimization, and a focus on user experience.
- Operating profit was EUR 1.6 million, adjusted for a EUR 10.5 million impairment due to the sale of the US advisory business. This figure was down from EUR 2.5 million last year.
- Free cash flow before earnouts decreased to EUR 2.7 million, down from EUR 5.0 million last year. The decrease was partly due to the timing of trade receivables and payables.
- Raketech executed plans to address ongoing performance issues with Casumba. This included team strengthening and cost-cutting measures to optimize operations.
- On July 5, Raketech announced the sale of its non-core US advisory business. The sale generated USD 2.25 million, resulting in a EUR 10.5 million non-cash impairment charge.
- On July 15, Raketech announced an increase in shares due to an earnout payment to the founders of Casumba. The number of shares increased by 1,437,913 based on a share price of 13.34 SEK.
- July 2024 revenues amounted to EUR 4.6 million, down from EUR 6.9 million last year. This was due to weak performance in the sub-affiliation area but is expected to improve during the quarter.
- Raketech has adjusted its full-year EBITDA guidance to a range of EUR 17.0 million to EUR 19.0 million. Free cash flow is expected to be just below EBITDA for the year.
