CLIQ Digital: Navigating Market Challenges and Focusing on Profitability

CLIQ Digital, the leading online performance marketing company selling subscription-based streaming services, has announced its preliminary and unaudited 2024 headline financial results. The company faced tough market conditions and slower-than-expected sales growth initiatives in 2024, but it has managed to fix its foundations and is now looking to build the future with a fresh entrepreneurial spirit and a clear sense of renewal.



In 4Q 2024, Group sales declined by 11% quarter-on-quarter to €48 million (-26% y/y), mainly due to fewer customers. The expected average lifetime value (LTV) decreased quarter-on-quarter from €72 to €70 due to higher churn rates resulting from new customer care tools in place at the card scheme companies. However, the quarter-on-quarter Group sales decrease decelerated notably from -21% in 3Q 2024 to -11% in the fourth quarter.

Customer acquisition costs: The Group's decision to strategically increase its focus on profitability was attributable for the lowering of the cost per acquisition (CPA). Total customer acquisition costs in 4Q improved by 15% q/q (-45% y/y), indicating that CLIQ Digital's strategic focus on profitability has successfully reduced its customer acquisition costs.

EBITDA: Quarter-on-quarter, EBITDA before special items in 4Q 2024 decreased by 15% to €5 million (3Q 2024: €6 million) and the corresponding EBITDA margin was marginally lower at 10% (3Q 2024: 11%) predominantly as a result of the lower sales development and despite reduced cost of sales and operating expenses. €2 million special items related mostly to costs incurred from the "Fit For Future" transformation programme to restructure and optimise the Group’s operational structures. Reported EBITDA was stable at €3 million (3Q 2024: €3 million) and the EBITDA margin came in at 6% (3Q 2024: 5%).

Liquidity: Quarter-on-quarter, CLIQ increased its operating free cash flow by €1 million to €4 million in 4Q 2024 (3Q 2024: €3 million). In the full year 2024, the operating free cash flow decreased by €16 million to €3 million (2023: €19 million). The net cash position at the year-end close was €12 million (31/12/2023: €16 million) after buying back shares for €5.5 million and distributing €0.3 million in dividends in April 2024.



The Group successfully completed its share buyback programme ahead of schedule on 3 January 2025. In total, CLIQ bought back 646,871 own shares for €5.5 million at an average share price of €8.48, which equalled 9.9% of the total share capital issued. This move signals the company's confidence in its future prospects and its commitment to returning value to shareholders.

Management Board statement: "2024 was a very tough year for CLIQ and also for my fellow shareholders as our business faced tougher market conditions and the new sales growth initiatives progressed slower than expected,” said Luc Voncken, CEO. "Although market conditions in 2025 remain unstable, we have fixed our foundations and now we must build the future with a fresh entrepreneurial spirit and a clear sense of renewal to tap into the growth opportunities that lie ahead of us.”

In conclusion, CLIQ Digital has faced significant challenges in 2024, but it has managed to navigate these obstacles by focusing on profitability and implementing operational restructuring measures. The company's share buyback programme and its commitment to returning value to shareholders further demonstrate its confidence in its future prospects. As CLIQ Digital looks to the future, investors should keep a close eye on the company's progress and its ability to tap into the growth opportunities that lie ahead.