Linkfire initiates annual guidance for 2023
Linkfire issues its second annual guidance in accordance with requirements on the disclosure of annual financial guidance in the Danish Financial Statements Act.
“To reach EBITDA breakeven based on the projected cost base for 2023, Linkfire’s revenue needs to grow by 22%, while the compounded annual growth rate between 2018-2022 was 40%.”
Revenue guidance
In 2023, Linkfire expects continued revenue growth and guides revenue within the range between DKK 60-70 million for the full financial year. This corresponds to a yearly growth of 14-33%.
In order to achieve our guidance, performance on the following key drivers is required:
- Continued strong RPM performance
- Sustained traffic levels on a year-on-year basis
- Continued inflow of new platform users, free and paid
- Continued ability to retain and expand existing subscription contracts
- Continued product innovation and development
Linkfire maintains our mid-term financial target of 20-40% organic revenue growth.
EBITDA guidance
Linkfire expects to achieve EBITDA breakeven for the year and guides EBITDA within the range between negative (DKK 5 million) to positive DKK 5 million for the full financial year. Linkfire is committed to reaching breakeven, while the guidance on both sides of neutral EBITDA takes into account the inherited uncertainty of balancing around the breakeven point.
Continued investments into innovation and development of our offering are expected throughout the year and are the basis for expecting continued growth in the coming years. Possible deviations from the guided ranges depend on investments into new strategic opportunities supporting our announced growth and long-term growth and profitability strategy.
Strategy execution
During 2022, the company has taken several initiatives to eliminate risk in the breakeven plan. We have narrowed our operating focus to short-term return initiatives and the least capital intensive deployment of cash. In 2023, Linkfire expects to utilize the lighter operating setup to perform EBITDA breakeven for the year.
To reach EBITDA breakeven based on the projected cost base for 2023, Linkfire’s revenue needs to grow by 22%, while the compounded annual growth rate between 2018-2022 was 40%. We expect recurring subscription revenue to deliver growth in line with previous years, while we expect commission revenue to continue delivering the majority of growth. By focusing on the utilization of our core profit driver, the Marketing Platform, and the part of the Discovery Network deriving directly from it, we are well positioned to deliver on our guidance.
Statements about the future expressed in this announcement reflect Linkfire's current expectations for future events and financial results. The nature of these statements is affected by risk and uncertainties. Therefore, the company’s actual results may differ from the expectations expressed in the management commentary.
For further information, please contact:
Tobias Demuth, CFO
Telephone: +45 27 84 44 68
E-mail: [email protected]
Certified Adviser
Aktieinvest FK AB
Telephone: +46 739 49 62 50
E-mail: [email protected]