Storytel Q4 2023 Earnings snapshot

Storytel reported strong Q4 financial performance for 2023, placing a renewed emphasis on profitability.

Storytel Q4 2023 Earnings snapshot

Storytel reported strong Q4 financial performance for 2023, placing a renewed emphasis on profitability. The company’s total revenue approached market expectations at SEK 946 million, slightly below the forecasted SEK 948.7 million. Adjusted EBITDA, excluding restructuring and write-down expenses, was reported at SEK 86 million, only marginally shy of the anticipated SEK 89.42 million. This outcome, in line with market expectations, has been positively received, as reflected by the stock's over 18% surge, likely spurred by the announcement of a comprehensive restructuring program.

Key Points from the Earnings Release:

  • Storytel has announced a strategic pivot toward profitability, resulting in the implementation of an efficiency optimization initiative, including a 13% reduction in its workforce anticipated in the first quarter of 2024.

  • A non-cash write-down of SEK 632 million was reported, largely due to a SEK 465 million impairment of goodwill associated with Audiobooks.com and additional content asset write-downs in expansion markets.

  • With robust Q4 performance, Storytel’s preliminary streaming revenues rose to SEK 858 million, a 16% year-over-year growth, while preliminary total group revenues grew by 9% to SEK 946 million.

  • Adjusted for write-downs and restructuring charges, Q4 adjusted EBITDA jumped 62% to SEK 86 million, equating to a margin of 9.1%, substantially exceeding the company's guidance.

  • For the full year of 2023, Storytel realized an adjusted EBITDA of SEK 248 million, reflecting a robust margin of 7.1% and a notable year-on-year expansion of 170%.

  • Storytel’s preliminary operational cash flow was SEK 46 million for Q4 and SEK 89 million for the full year, surpassing the guidance figure of at least SEK 80 million. The firm also reduced its financial obligations by repaying SEK 100 million in bank debt.

Forward-Looking Statements:

  • As of 2024, Storytel forecasts revenue growth of about 10%, with an adjusted EBITDA margin exceeding 12% and operational cash flow constituting over 7% of revenue.

Building upon the reinforced commitment to profitable advancement, particularly in its 10 core markets, Storytel has laid out enhanced financial objectives for 2026, aiming for group revenues of approximately SEK 4.5 billion, with streaming revenue CAGR between 10-12%, an adjusted EBITDA margin over 15%, and operational cash flow above 10% of revenue.

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