Catena Media recently updated its long-term financial targets for 2024-2026. CEO Michael Daly described the company’s performance in 2023 as “disappointing”. Despite a positive start to the year with a return to net profit and a 24% increase in revenue from its North American operations, Catena experienced a 21% drop in North American revenue for the year, leading to a decline of over 75% in its share price.
In an effort to turnaround its declining revenue, Catena plans to focus on the North American market and offers high-margin opportunities. The company is heavily dependent on the US, accounting for over 80% of its income. However, it will need to take action to prevent further decline and stabilize its financials.
In Q4 2023, Catena saw a 43% decrease in revenue and an 88% decline in adjusted EBITDA from continuing operations. Its financials for the full year also showed a 22% drop in revenue and a 47% decrease in adjusted EBITDA from continuing operations.
The company is implementing a strategic review and making investments in technology and data innovation, particularly in artificial intelligence (AI), to transform its business and become a leader in online affiliate marketing. Catena aims to launch a new platform in Q1 2024 that will enhance its organic search competence and enable faster rollouts of innovations, including AI and sub-affiliation.
While Catena acknowledges that these investments will take time to generate results, it believes that a focus on regulated markets and the integration of AI will lead to higher revenue and a return to growth in the second half of 2024.
