Believe Posts Double-Digit Q1 2024 Revenue Growth, Doubles Down on Acquisition Strategy

believe earnings q1 2024
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believe earnings q1 2024
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Believe founder and CEO Denis Ladegaillerie. Photo Credit: Believe

As it moves closer to exiting the public market, Believe has revealed “solid” financials for Q1 2024, when revenue jumped nearly 16% year over year (YoY).

Paris-based Believe posted its first-quarter financials today, less than one week after an EQT-led consortium took another key step towards privatizing the business. That play is seemingly set to wrap relatively soon; the consortium, also including founder and CEO Denis Ladegaillerie, has already negotiated agreements for a controlling stake.

Predictably, privatization came up during the earnings call, when execs reiterated that the consortium’s block purchase of 72% of Believe stock will likely close “in the very next few days,” with regulatory reviews to follow.

Amid this process of once again becoming a private company, Believe looks to be riding momentum, to the tune of €230.3 million (currently $246.33 million) in Q1 2024 revenue. That sum reflects the initially mentioned 15.9% YoY boost and consists specifically of $230.28 million/€215.3 million from premium solutions (up 15.8% YoY) and the remaining $15.94 million/€14.9 million from automated solutions (up 18.2% YoY).

Explaining the hike, BeReal-partnered Believe noted a positive streaming showing due to “price increases at several large digital platforms,” with ad-supported revenue trending upward in Europe and the Americas as well. On the other side of the coin, currency headwinds “strongly affected” revenue, to the tune of a 3.6% dip, per the company.

During the corresponding earnings call, Believe touched upon its “signings across key markets,” including Soffie, Dillom, and Thailand’s Freehand, besides the recent launch of electronic label All Night Long. The latter has signed seven acts thus far, execs communicated.

By market, Believe said revenue had spiked 41% YoY, to $82.14 million/€76.8 million, in Europe excluding Germany and France. Higher-ups attributed the jump specifically to strong performances in Southern Europe, Eastern Europe, and Turkey.

Meanwhile, France’s Q1 revenue growth came in at 20% ($41.28 million/€38.6 million total) in part because of “solid non-digital sales driven by Believe’s ranking among” the top-three “players for local acts.” Revenue from the Americas improved 11.2% YoY to $34.97 million/€32.7 million thanks to an “increased position in Brazil.”

That’s compared to a modest 0.5% YoY uptick in Asia Pacific and Africa, which delivered $60.22 million/€56.3 million amid “a strong performance in Greater China and Japan.”

Lastly, in terms of Believe’s Q1 2024 performance breakdown by region, revenue in Germany slipped 2.5% YoY to $27.81 million/€26 million. The company chalked that decrease up to “a strong decline in non-digital sales as” it “continued exiting contracts with heavy physical and merch content.”

Elsewhere during their company’s earnings call, Believe execs doubled down on plans to continue spearheading acquisitions. The business bought Sentric last year before kicking off 2024 with the purchase of White Hill Music’s catalog.