Flexion, a mobile games distributor, achieved remarkable success in the last quarter of 2023, generating a record quarterly revenue of £24.3 million, marking a 12% year-on-year growth rate and a significant 64% increase quarter on quarter.
Although the operating profit decreased to £0.2 million, the gross profit saw a 35% year-on-year increase to £5 million in Q4. The company also broke another record with its adjusted EBITDA climbing 38% to £2.1 million in the fourth quarter.
Record-breaking Results
The tail end of 2023 was a strong period for Flexion, showcasing record-breaking results with a substantial 64% revenue increase over Q3, contributing to a successful fiscal year. In Q4 alone, the company tripled its monthly active users year-on-year, reaching 4.5 million users.
Several deals were secured with prominent game developers such as Neocraft, Vizor Games, and Special Gamez. The partnership with Scopely for Monopoly GO! also proved to be lucrative, with the game generating $2 billion within less than a year and boasting an average of eight million daily players.
While Flexion’s revenue grew 3% to £70.8 million for the entire year of 2023, and gross profit increased by 12% to £12.4 million, the growth rate slowed down significantly compared to the previous year’s 147% increase. Operating profit for the entire fiscal year fell to -£0.3 million, and adjusted EBITDA also decreased by 14% to £4.2 million.
Flexion CEO Jens Lauritzson reflected on the achievements of 2023, highlighting the launch of Monopoly GO! as a major milestone. He noted the challenges in user acquisition and the changing landscape due to regulatory changes like the Digital Markets Act in Europe, aimed at opening up major platforms like Google and Apple.
Lauritzson emphasized the company’s strong sales pipeline and anticipated converting leads in the upcoming quarters. He also mentioned the expansion of Scopely’s Stumble Guys game following the success of Monopoly GO! on various app stores, including the Samsung Galaxy Store, Huawei’s AppGallery, and Amazon’s store.
