Falcon's Beyond Global, Inc. (FBYD)·Q1 2024 Earnings Summary

Executive Summary

• Consolidated revenue was $1.52M, down sharply year over year due to FCG deconsolidation; net income swung to $114.0M driven by a $118.6M non-cash gain from earnout liability revaluation .
• FCG posted strong growth with revenues +87% YoY to $14.9M and net income of $1.8M; PDP JV revenues rose to $7.5M with net income of $0.95M .
• Liquidity remains constrained with a working capital deficiency and “substantial doubt” about going concern; $15.1M of debt matures within 12 months and additional capital is needed .
• Strategic highlights: Dragon Ball theme park consultancy revenue recognition ($9.8M in Q1) and Hershey-branded LBE licensing; FBB launched Attractions Systems & Technologies .
• No formal Q1 earnings call transcript was available in the document set; estimate comparisons to Street consensus were unavailable via S&P Global at the time of analysis.

What Went Well and What Went Wrong

What Went Well

• FCG growth and profitability: revenue +87% YoY to $14.9M, operating income $1.6M, net income $1.8M; Company recorded $0.5M equity income from FCG .
• PDP JV improvement: revenue $7.5M (+$1.2M YoY), operating income $1.3M, net income $0.95M; Company recorded $0.5M equity income from PDP .
• Strategic pipeline momentum: Management highlighted Hershey licensing, Dragon Ball park role, and a new Attractions Systems & Technologies sales push. “We are poised to unlock significant growth opportunities… as we embark on this new chapter” — Scott Demerau . “This quarter’s achievements underscore the strength of our business model…” — Simon Philips .

What Went Wrong

• Core consolidated revenue softness: $1.52M in Q1 due to FCG deconsolidation; loss from operations remained ($5.3M) despite lower SG&A .
• Liquidity/going concern: management disclosed substantial doubt about ability to continue as a going concern; working capital deficiency and near-term debt maturities persist .
• Legal overhang: Guggenheim complaint for ~$11.1M related to business combination fees; the company accrued the amount and plans to contest .

Financial Results

Segment and JV performance

Balance Sheet KPIs

Notes:

• The $118.6M gain from earnout liability revaluation drove net income; earnout fair value fell from $488.6M to $370.0M .

Guidance Changes

No formal Q1 2024 guidance was disclosed in the earnings 8-K or 10-Q .

Earnings Call Themes & Trends

No Q1 2024 earnings call transcript was available in the document set. Themes inferred from the 8-K press release and 10-Q:

Management Commentary

• “We are poised to unlock significant growth opportunities… operating at the intersection of content, technology and experiences” — Scott Demerau, Co-Founder & Executive Chairman .
• “Falcon’s Creative Group… will serve as the master planner, attraction designer, and creative guardian for the pioneering Dragon Ball theme park… as part of our ongoing partnership with Qiddiya City” — Simon Philips, President .
• “We saw robust financial performance in our inaugural earnings report, including an 87% year-over-year increase in revenue in Falcon’s Creative Group” — CFO Jo Merrill .

Q&A Highlights

No Q1 2024 earnings call transcript was available in the document set; therefore, Q&A themes and clarifications cannot be assessed based on primary sources.

Estimates Context

• Street consensus EPS and revenue estimates for Q1 2024 were not retrievable via S&P Global at the time of analysis (tool access limit). As a result, explicit beat/miss vs consensus cannot be determined.
• Given the non-cash earnout revaluation gain of $118.6M, reported net income and EPS are not indicative of operating performance; Adjusted EBITDA improved to $(4.51)M from $(7.99)M YoY .

Key Takeaways for Investors

• Operating engine strength at FCG: revenue growth (+87% YoY) and profitability (OI $1.6M) support the thesis around design/attraction services and Qiddiya-linked pipeline; concentration risk remains significant (QIC as key customer) .
• Destinations JV (PDP) shows fundamental improvement on rates in Spain; positive equity income contribution offsets DR park exit dynamics .
• Reported net income was driven by non-cash earnout fair value changes; focus on Adjusted EBITDA trajectory and cash flow to assess underlying health .
• Liquidity is the central risk: substantial doubt about going concern, near-term maturities ($15.1M), and need for external capital raises or asset monetization .
• Legal/transaction cost overhang (Guggenheim ~$11.1M) and internal control remediation add uncertainty and potential cash uses .
• Strategic catalysts: Hershey licensing, Dragon Ball consultancy (with $9.8M recognized in Q1), and expansion of rides/tech sales could broaden revenue mix if execution and funding align .
• Equity volatility likely from earnout/warrant fair value remeasurements; investors should anticipate non-cash swings that obscure operating trends .

Appendix: Additional Data Points

Cash Flows

Debt Summary (as of Mar 31, 2024)

Non-GAAP

Disclosures

• No Q1 2024 earnings call transcript or standalone press release document was found beyond the 8-K with Exhibit 99.1; legal 8-K (May 6, 2024) disclosed the Guggenheim complaint .
• Key risks: going concern, customer concentration (QIC), legal proceedings, internal controls, earnout/warrant remeasurements .