Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cliq Digital AG (XTER:CLIQ, Financial) successfully stabilized EBITA and improved cash flow and liquidity in Q3 2024.
- The company is progressing well on its restructuring program, focusing on profitability and cash generation.
- Cliq Digital AG has diversified its sales channels, seeing positive results from search engine advertising and social media marketing.
- Cost-cutting measures have led to significant recurrent annual cost savings, improving the gross profit margin.
- The company has launched new digital products and added attractive new content to its library, enhancing its service offerings.
Negative Points
- Sales performance in Q3 2024 was disappointing, with a decline in sales and average lifetime value.
- The company experienced a higher churn rate, impacting revenue and reducing the number of paying customers.
- Sales in North America and Europe declined by 18% and 19% respectively, due to changes in customer care tools and higher churn rates.
- The company's focus on profitability led to a reduction in customer acquisition costs, resulting in fewer new subscribers.
- Cliq Digital AG's expansion efforts in Japan and the Middle East have been deprioritized due to declining profitability and focus on other regions.
Q & A Highlights
Q: When will the marketing budget rise to capture the optimization in full and see results in the bottom line? How much marketing budget is planned over the next quarters?
A: Luc Voncken, CEO, stated that 2024 is a transformation year for CLIQ, focusing on efficiency and margin growth. The marketing budget will increase, but specifics will be disclosed with the 2025 guidance during the full year 2024 results presentation on February 20th.
Q: Are further extraordinary expenses expected in Q4 related to the fit for future program?
A: Ben Bos, Management Board Member, confirmed that there will be further extraordinary expenses, but to a lesser extent than in previous quarters, as the transformation program is expected to be finalized in Q1 2025.
Q: Can you explain the new digital products and markets being launched?
A: Luc Voncken, CEO, mentioned that CLIQ has launched new digital products across various regions but was cautious about details due to competitive reasons. The focus is on entertainment and convenience.
Q: What is the status of the new monetization models being tested?
A: Luc Voncken, CEO, explained that CLIQ will launch an advertising-based video on demand (AVOD) model in the US, allowing customers to stream content for free in exchange for watching ads. This model aims to attract subscribers who may later opt for the paid ad-free version.
Q: When does the management board expect LTV and the number of subscribers to stabilize, and at what level?
A: Ben Bos, Management Board Member, emphasized that CLIQ focuses on acquiring new customers rather than retaining them. The lifetime value (LTV) varies by region, and the goal is to maximize profit rather than stabilize subscriber numbers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
