Key points:
- Revenue increased by 8% from the prior year period, reported to be €81m ($85m) for the third quarter of 2024
- Better Collective also initiated a €50m cost reduction program to streamline operations and align its investment base with market dynamics and outlook
Better Collective has reported the company’s financial results for the third quarter of 2024 having ended September 30, seeing an increase in both revenue and adjusted EBITDA but lowering its full-year (FY) financial guidance.
The company reported an 8% increase in revenue from the prior year period for a total of €81m during the third quarter of 2024. Better Collective’s adjusted EBITDA increased by 14% year-on-year to be €22m for Q3 2024.
Its Europe & Rest of World segment was able to increase by 15% for a reported total of just under €62.2m, while its North American segment decreased by 12% from the prior year period to generate nearly €19m during the third quarter of 2024.
While the company saw increases from previous third-quarter reports, it lowered its FY2024 revenue projection by €40-50m, going from an expected range of €395-425m to €355-375m. Its adjusted EBITDA financial guidance was also lowered, downgrading from €130-140m to €100-110m.
Better Collective stated in its report that the downgrades were made due to lower-than-expected partner activity in the US, as well as an accelerated slowdown in Brazil.
Good to know: Better Collective acquired Toronto-based digital sports media group Playmaker Capital in November of 2023
“During Q3 we have experienced changing dynamics in the US market, which has changed the outlook. Further, Brazil has seen an increasing slowdown all year heading into the expected regulation. The impact on Q3 and the outlook led us to lower our financial targets for the year, marking the first downgrade since becoming a listed company in 2018,” Better Collective Co-Founder and CEO Jesper Søgaard said.
“Although the first state in the US has been operational for six years, it is effectively only three years mature for most states. Meanwhile, the Brazilian market is expectedly on the brink of regulation. Young markets bring challenges and opportunities, and we are committed to navigating this, like done historically in more mature regulations.”
Better Collective also initiated a €50m cost reduction program in order to streamline operations and align its investment base with market dynamics and outlook. At the end of October, the company let go over 300 employees, representing more than 15% of its entire workforce.
Better Collective stated that with most measures such as these having already been executed, it is “well on track” to reduce costs ahead of 2025.
