Raketech Group Holding PLC (RAKE) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to RakeTech's Q4 2024 presentation. My name is Johan Svensson and I'm the CEO of RakeTech. Today, CFO Måns Wahlborn and I are here to present RakeTech's Q4 report and the full numbers of 2024. We will as well share an update regarding your new strategic direction when it comes to our affiliation marketing vertical. But first, we will start with our Q4 financial highlights. We came in at 12.3 million euro in revenues in Q4, an organic decrease of 45.9% year on year and 42.6% adjusted for the divestment of advisory tips to business. Adjusted EBITDA of 3.2 million euro, a decrease of 46.2% year on year with an EBITDA of 3 million euro. Total revenue for the full year of 61.2 million euro with an adjusted EBITDA of 15.7 million euro and an EBITDA of 14.7 million euro. Free cash flow for the full year of 14.7 million euro in line with EBITDA. which provide financial headroom to settle our earn-out commitments, including the €8 million due in H1 and the remaining €20.6 million payable at our discretion until September 2026. But outcome of assessment of our operating model has resulted in further cost savings. In Q4, our costs were 29% lower compared to Q1 2024. Direct publisher costs excluded. Fourth of February, we announced a non-cash impairment of 48.5 million euro relating primarily to reduction in the internal book value of non-core assets acquired pre-IPO. As from this year, we will start and report our quarterly figures earlier than before and we will as such adapt our trading update accordingly. Now let's look at the performance of each business area during the quarter. Starting with affiliation marketing, revenue in Q4 came in at 6.5 million euro, a decline of 32% year on year and 4% lower than Q3. Kazumba assets continue to decline while ...