- OverActive Media (TSXV:OAM) announced record financial results for the fourth quarter (Q4) and full year (FY) 2024
- Achieved revenue of $9.9 million in Q4 2024, marking a 134 per cent increase year-over-year compared to $4.2 million in the same period in 2023
- For the full year 2024, OverActive Media reported revenue of $27.0 million, up 72 per cent compared to $15.7 million in FY 2023
- OverActive Media stock (TSXV:OAM) last traded at $0.23
OverActive Media (TSXV:OAM) announced record financial results for the fourth quarter (Q4) and full year (FY) 2024. The company reported significant growth across various metrics, driven by acquisitions and expanded business operations.
Q4 2024 highlights
- Revenue: OverActive Media achieved revenue of $9.9 million in Q4 2024, marking a 134 per cent increase year-over-year compared to $4.2 million in the same period in 2023. This surge was primarily fuelled by higher league share, expanded partnerships, and revenue from acquisitions.
- Gross profit: The gross profit for Q4 increased by $1.9 million to $5.3 million, with a gross margin of 54 per cent, compared to $3.4 million and 80 per cent in Q4 2023. The integration of the influencer business impacted the margins.
- Operating costs: Operating costs rose by 54 per cent, totaling $6.6 million, compared to $4.3 million in Q4 2023. The increase was attributed to additional headcount, content production, and agency infrastructure tied to strategic expansion.
- Adjusted EBITDA: The adjusted EBITDA loss improved to $554,000, compared to a loss of $699,000 in Q4 2023. This improvement reflects the positive impact of high-margin digital sales and enhanced operational leverage.
- Comprehensive loss: The comprehensive loss for the quarter was $1.3 million, compared to a loss of $768,000 in Q4 2023, primarily driven by foreign currency translation losses.
- Net working capital: Net working capital stood at $6.6 million, with cash and cash equivalents at $6.8 million. These amounts are net of an additional $782,000 invested in the venue project in Toronto, bringing the total investments in the venue project to date to $2.1 million.
FY 2024 financial highlights
- Revenue: For the full year 2024, OverActive Media reported revenue of $27.0 million, up 72 per cent compared to $15.7 million in FY 2023. This growth was driven by acquisitions and expansion across team operations, digital merchandise sales, brand partnerships, influencer business, and live events, broadening OverActive’s revenue mix and geographic reach.
- Gross profit: The gross profit for FY 2024 totaled $16.8 million, a 62 per cent increase from the previous year. However, the gross margin declined to 62 per cent from 66 per cent, due to changes in product mix, including lower-margin revenue from the influencer agency and live events.
- Operating costs: Operating costs for FY 2024 were $23.4 million, up 37 per cent, driven by investments in talent, systems, and platform efficiency, along with a $2.3 million one-time restructuring and business development expense tied to acquisitions.
- Adjusted EBITDA: The adjusted EBITDA loss improved by 42 per cent to $3.6 million, compared to a loss of $6.2 million in FY 2023.
- Comprehensive income: OverActive Media reported a comprehensive income of $311,000 for FY 2024, compared to a loss of $12.2 million in FY 2023. This represents a 103 per cent year-over-year improvement, driven by strong revenue growth, disciplined cost management, an $11.5 million gain from the elimination of franchise liabilities, and favorable foreign currency translation.
In a news release, the company also touted the fact that the team hosted Call of Duty Major III in Toronto, acquired KOI and Movistar Riders, and expanded into Latin America, Europe, and China.
OverActive Media Corp. is a global esports and entertainment organization focused on content creation and distribution, culture, and live and online events. Its business activities consist of owning and operating an integrated portfolio of esports teams, as well as audience engagement.
OverActive Media stock (TSXV:OAM) last traded at $0.23 and lost 11 per cent since the news was released. While up more than 2 per cent over the past three months, it has fallen over 26 per cent since this time last year.
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(Top image via OverActive Media Corp.)