Donkey Republic generates 12.5M DKK in total revenue in the first half year of 2021
On track towards delivering on 2024 business plan.
Company Announcement No. 6-2021
Financial report for the period 1 January 2021 - 30 June 2021
Highlights
(Read the full report here)
- More than 50% growth in the recurring revenue segment of B2B, B2G and SaaS
- Good performance of HW sales in the first half will continue to drive ARR, which was above 6M DKK in June ‘21 and more than doubled vs June ‘20.*
- For 2021 we expect a revenue between 30M DKK to 32M DKK and a significantly better operational margin than in 2020, while EBIT is expected on previous years level due to growth of the organization.**
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Both revenue growth and overall outlook are in line with expectations for the 2024 business plan laid out in the company description.
*The ARR is calculated by taking the recurring revenue (contracts with a running time of above 1 month) in June and multiplying it by 12 months.
**Operational margin incl. all costs directly related to running our MaaS and SaaS business plus fleet depreciation, not included is HQ cost, capitalization and other income and expenses.
Outlook for 2021
Our outlook for the rest of the year is to continue similar growth and further improvement of the revenue driven by our recurring revenue streams. Overall we expect to achieve a revenue of something between 30M DKK to 32M DKK, assuming that we do not have Europe wide lockdowns again due to Covid-19. With a more profitable revenue mix and an improved operational cost structure, we also expect the operational margin to be significantly better than last year. With the continued investment into future growth, we expect that our overall profitability will be on a similar level as the previous year, which is in line with our overall business plan (adjusted by the 2021 Covid-19 impact)“We remain confident that Donkey Republic will continue to meet the needs of cities and riders and deliver on the goals we indicated for our IPO, reaching profitability and 188+mio DKK revenue by 2024.” -
Erdem Ovacik, CEO & Co-founder at Donkey Republic
Presentation
The Half Year Report will be presented at an online conference call Wednesday 18 August 2021 at 10.00-10.30 CET. Register for the conference call at CLICK HERE. For more details please see the Half Year report attached.
Management Commentary
Improved top- and bottom line despite Covid-19 impacts
Donkey Republic has, like many others, had to face the hardships of going through a pandemic, especially with a sudden drop of visitor traffic. However, we are pleased that despite ongoing travel restrictions and lockdowns in H1 2021 due to Covid-19 our strategy to diversify revenue away from visitors have worked and we managed to improve both our top- and bottom line, despite Covid-19 adversely impacting the entire H1 2021 vs mainly Q2.Donkey Republic on Google Maps
On July 5th, Donkey Republic announced an integration with Google Maps that gives millions of people access to easily find Donkey Republic’s micromobility services, starting with Berlin, Barcelona and Copenhagen. We are one of the first micromobility companies outside of Google’s own portfolio company Lime to launch in Google Maps.
Antwerp, Belgium 10 year contract
Donkey Republic announced in June that Antwerp Transport Region Lantis selected Donkey Republic as its first ever electric shared bike system in all the municipalities of the Antwerp Transport Region and some neighboring municipalities. Donkey Republic will rollout a basic network of initially 1,650 electric shared bikes for the entire region, for a period of at least 10 years with expected revenue of DKK 15-23M. The deal also entails an option for an additional contract for even more bikes in the region. The final contract is expected to be signed and announced before the end of Q3.Organisational Growth
Donkey Republic has invested a lot in organisational growth and continues to do so looking into H2. We have hired amazing talents and experienced people in key positions as well as expanded our herd of shepherds tending to our bikes all around Europe. We have ramped up our Marketing, Business Development, Product and Operation departments, and expect to hit 85 people by the end of 2021.