System1, Inc. reported a revenue of $343.9 million for the fiscal year ending December 31, 2024, a decrease of 14% from $402.0 million in the previous year. The company's net loss from continuing operations was $97.3 million, compared to a loss of $111.3 million in 2023. This improvement in net loss was attributed to a reduction in operating expenses, which fell to $432.5 million from $488.0 million, primarily due to lower traffic acquisition costs and a decrease in salaries and benefits expenses. The company’s operating loss remained relatively stable, increasing slightly from $86.0 million in 2023 to $88.6 million in 2024.
Significant operational changes included the completion of the sale of its subscription business, Protected, on November 30, 2023, for $240 million in cash and the cancellation of approximately 29.1 million shares of Class A common stock. This strategic move was aimed at refocusing the company on its core digital advertising business. Additionally, System1 underwent a corporate reorganization on August 1, 2024, consolidating its assets under a newly formed intermediate holding company, System1 Holdings, LLC.
In terms of user engagement, System1 reported an increase in Owned and Operated Advertising sessions, which rose to 7.2 billion from 3.8 billion in the previous year. However, the revenue per session for Owned and Operated Advertising decreased to $0.04 from $0.09, indicating a shift towards lower revenue-generating traffic. The Partner Network also experienced a decline in revenue, down 15% to $62.0 million, attributed to instability in the advertising partner ecosystem.
Looking ahead, System1's management expressed cautious optimism regarding future growth, emphasizing the importance of expanding its advertising partner base and optimizing its Responsive Acquisition Marketing Platform (RAMP). The company aims to enhance its operational efficiency and reduce cash operating expenses while navigating the challenges posed by macroeconomic conditions, including rising interest rates and inflation. As of December 31, 2024, System1 had $63.6 million in cash and cash equivalents, along with $50 million available under its revolving credit facility, positioning it to meet its operational and financial commitments in the near term.
About System1, Inc.
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