System1(SST) - 2024 Q4 - Annual Results

Revenue Performance - Revenue for Q4 2024 decreased by 21% year-over-year to $75.6 million, while full-year revenue decreased by 14$343.9 million[7]. - Revenue for Q4 2024 was $75.6 million, down 21.0$96.1 million in Q4 2023; annual revenue decreased from $402.0 million in 2023 to$343.9 million in 2024, a decline of 14.4%[23]. Profitability Metrics - Adjusted Gross Profit for Q4 2024 increased by 19% year-over-year to $44.7 million, and for the full year, it decreased by 1$152.3 million[7]. - Adjusted EBITDA for Q4 2024 increased by 79% year-over-year to $17.9 million, while for the full year, it increased by 32$38.6 million[7]. - Adjusted EBITDA improved to $17.9 million in Q4 2024 compared to$10.0 million in Q4 2023, and for the year, it increased from $29.2 million in 2023 to$38.6 million in 2024[22]. - Gross profit for Q4 2024 was $31.8 million, up from$24.9 million in Q4 2023; annual gross profit slightly decreased from $103.4 million in 2023 to$101.3 million in 2024[23]. Net Loss and Financial Position - GAAP Net Loss for Q4 2024 decreased by 29% year-over-year to $18.0 million, and for the full year, it decreased by 13$97.3 million[7]. - The company reported a net loss from continuing operations of $18.0 million in Q4 2024, an improvement from a loss of$25.4 million in Q4 2023; annual net loss improved from $111.3 million in 2023 to$97.3 million in 2024[22]. - The accumulated deficit increased from $707,662,000 in 2023 to$782,335,000 in 2024, reflecting a worsening financial position[21]. Asset and Liability Changes - Total assets decreased from $605,470,000 in 2023 to$459,129,000 in 2024, a decline of approximately 24.2%[21]. - Total liabilities decreased from $436,155,000 in 2023 to$374,133,000 in 2024, a reduction of approximately 14.2%[21]. - Cash and cash equivalents dropped significantly from $135,343,000 in 2023 to$63,607,000 in 2024, a decrease of about 53%[21]. Strategic Initiatives and Growth - The company expects Q1 2025 revenue to be between $69 million and$71 million, with Adjusted Gross Profit projected between $38 million and$40 million[6][16]. - The RAMP platform saw a 500%+ increase in campaign launches year-over-year in Q4 2024 due to automation and AI initiatives[8]. - CouponFollow.com experienced a 129% year-over-year increase in organic sessions in Q4 2024, indicating strong user engagement[8]. - The company renewed advertising arrangements with Google in October 2024 and February 2025, with agreements extending to 2027[8]. - The company is focused on optimizing its capital structure and enhancing monetization strategies for long-term growth[4]. - System1's operational efficiency and financial discipline were highlighted as key factors in navigating a volatile market[4]. Shareholder Equity - Class A common stock shares issued and outstanding increased from 65,855 in 2023 to 73,653 in 2024[21]. - Additional paid-in capital rose from $843,112,000 in 2023 to$863,033,000 in 2024, indicating increased investment in the company[21].