Flexion reports strongest Q1 to date as revenue hits £18.3 million

• Flexion is also getting set to launch its new SDK that's designed to simplify support for new distribution channels, including direct-to-consumer (D2C) models

Flexion has recorded its strongest first quarter ever with a 13% increase in total revenue which amounted to £18.3 million and a substantial 58% rise in total gross profit of £4.0 million. 

The company's Q1 earnings report also shows that adjusted EBITDA experienced a boost of 121% to £1.6 million. However, the operating loss also increased to £0.4 million while the EPS slightly improved from -0.97 pence to -0.94 pence. 

Notably, operating cash flow turned positive, reaching £2.7 million from a previous -£1.1 million, and cash and cash equivalents grew to £13.8 million from £12.0 million.

The rise of alternative routes to market 

While primary storefronts such as Google Play and the iOS App Store have historically been the major distribution platforms for companies on mobile, in recent years with changes such as IDFA, alternative distribution storefronts have become more and more appealing.

And for companies aiding in the publishing process onto alternative storefronts the move has proven a winning formula for both parties. Flexion is an alternative app store publisher that works with developers to take over the distribution, management and updating of their titles to alternative storefronts such as the Amazon Appstore or Huawei App Gallery.

Key developments and future plans

During the quarter, Flexion signed an agreement with Big Fish Games, launched Klondike Adventures from Vizor Games and launched Immortal Awakening and Chronicle of Infinity from Neocraft. Following the quarter, it launched EverMerge from Big Fish Games and penned agreements with Kabam and Jam City. 

Also, Companies House granted an extension until Monday, June 10th 2024 to file the 2022 accounts. Flexion has partnered with Grant Thornton to see this through and will hold its 2024 (Annual General Meeting) AGM on Wednesday, June 26th 2024.

Flexion CEO Jens Lauritzson says, “Our strong net cash position enables us to negotiate favourable contracts with game developers, invest in strategically important initiatives and selectively pursue acquisition opportunities. We have no interest-bearing debt."

As one of the pioneers of alternative web stores, Lauritzson adds that “virtually all big developers now have their own web stores or are in the process of developing one" and that “the web store trend is important and relevant to Flexion for several reasons" and believes “it is the first step in a shift towards more direct-to-consumer (D2C) lead marketing."

Flexion is also getting set to launch its new SDK that's designed to simplify support for new distribution channels, including direct-to-consumer (D2C) models. This package will also include support for alternative payment providers like Coda Payments.