Better Collective announced its financial results for the third quarter of 2024 ending September 30, with both revenue and adjusted EBITDA increasing, but it has lowered its full-year (FY) financial guidance.
The company reported that revenue for the third quarter of 2024 grew by 8% compared to the same period last year, totaling 81 million euros. For the third quarter of 2024, Better Collective's adjusted EBITDA increased by 14% year-over-year, reaching 22 million euros.
Revenue for its Europe and rest of the world segments grew by 15%, reporting just under 62.2 million euros, while its North American segment saw a 12% decline from the same period last year, generating nearly 19 million euros in revenue for the third quarter of 2024.
Although the company's performance has improved compared to previous third-quarter reports, it has lowered its revenue forecast for the 2024 fiscal year by 40 to 50 million euros, from an expected 395 to 425 million euros down to 355 to 375 million euros. Its adjusted EBITDA financial guidance has also been lowered, from 130 to 140 million euros down to 100 to 110 million euros.
Better Collective stated in the report that the downgrade was due to lower-than-expected activity from its US partners and an accelerated economic slowdown in Brazil.
Worth noting: Better Collective acquired Toronto-based digital sports media group Playmaker Capital in November 2023.
Better Collective co-founder and CEO Jesper Søgaard said: "In the third quarter, we experienced changes in the dynamics of the US market, which altered the outlook. Additionally, the trend of economic slowdown in Brazil intensified ahead of expected regulations. The impact on the third quarter and the outlook led us to lower our financial targets for the year, marking the first downgrade since our IPO in 2018."
"Although the first state in the US has been implementing it for six years, for most states, it has only matured for three years. Meanwhile, the Brazilian market is expected to implement regulations soon. Emerging markets bring challenges and opportunities, and we are committed to navigating these challenges and opportunities, just as we have done historically under more mature regulations."
Better Collective has also launched a 50 million euro cost-cutting plan to streamline operations and align its investment base with market dynamics and outlook. By the end of October, the company had laid off more than 300 employees, representing over 15% of its total workforce.
Better Collective stated that with most measures already implemented, cost reduction is "progressing well" ahead of 2025.
