Flexion releases a trading update and revised growth guidance
LONDON, 3rd of November 2023 – Flexion (Nasdaq: FLEXM), the games marketing company has today released a trading update. It includes preliminary revenue performance for its 3rd quarter 2023, estimated revenue for October 2023, revenue guidance for Q4 2023 and a revised guidance for the financial year.
- Total preliminary Q3 2023 revenue GBP 14.8m (18.5m)* of which:
- July revenue GBP 4.5m (5.8m)
- August revenue GBP 4.9m (6.5m)
- September revenue GBP 5.3m (6.2m)
- October estimated revenue GBP 6.6m (6.4m)
- Estimated Q4 2023 revenue GBP 22m-29m (21.7m)
- Due to lengthy negotiations of big contracts and delayed game launches in Q3, we have revised our annual revenue growth guidance to 0-10% for 2023. Previous guidance was the lower range of 20-40%
* Comparison figures for the year-earlier period in brackets
Jens Lauritzson explains: “I am pleased to say that the under-lying business is performing strongly with a strong September and a new USD sales record for Distribution in October, measured in constant currencies. However, some major game contracts have been delayed, causing us to revise the guidance for the remaining period of 2023.The first part of 2023 was a challenging year for the games industry. The weaker economic climate on top of the changes to targeting in advertising has impacted user acquisition and end-user spend negatively. The biggest impact has been seen in the mid-core games segment but most companies in our sector have felt some pain and Flexion has not been immune to it.
Year-to-date, we have grown our total revenue in USD by 7%, measured in constant currencies (which removes the negative impact of FX movements on our business in 2023). This is an achievement considering the weaker market climate and our reported 110% revenue growth in 2022. It is also worth pointing out that these numbers do not include any contribution from Audiencly’s important "7vsWild" project which should boost revenue by approx. GBP 3m in Q4 and further next year.
Our recovery started in September and was driven by the successful launches of our new titles together with significantly stronger distribution in some of our main stores and the newly launched Xiaomi GetApps store. This was further seen in October which was the strongest month in Flexion’s history with 26% revenue growth (YoY) in distribution measured in constant currencies. Financially, Flexion is also very strong with a long term positive operating cashflow and a cash balance of GBP 8m as per September 2023.
Since the launch of Monopoly Go and Stumble Guys in our channels in Q3, we have moved up a gear and are seeing stronger interest from the top-grossing game developers around the world. It sets us up for a solid Q4 2023 and a game changing 2024 - the year that the European Digital Markets Act will help drive further growth in alternative distribution, concludes Jens Lauritzson”
The company releases its quarterly results for Sep-2023 on the 22nd of November 2023.
This disclosure contains information that Flexion Mobile is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 03-11-2023 14:07 CET.
