Linkfire’s (NASDAQ: LINKFI.ST) Q1/2022 interim report - A very strong start to the year

Quarter in review

• Q1 Recognized revenue increased by 51 per cent to DKK 11.2M (Q1 2021: DKK 7.4M).
  
• Revenue on a constant currency basis increased by 46 per cent to DKK 11.1M (Q1 2021: DKK 7.6M).
  
• The gross profit on a constant currency basis increased by 44 per cent to DKK 8.0M (Q1 2021: DKK 5.6M) at a gross margin of 72 per cent (Q1 2021: 73 per cent).
  
• Focus during Q1 was on further expanding and solidifying the business and securing a good integration of smartURL.
  
• Q1 Consumer connections increased by 36 per cent to 481M (Q1 2021: 354M) and was positively impacted by the expected positive development in partner traffic.
  
• RPM grew by 38 per cent to DKK 9.52 (Q1 2021: DKK 6.87) and reached the highest quarterly RPM in Linkfire’s history.

Lars Ettrup, CEO and co-founder, comments:
“I am proud to share that our strategy continues to deliver and resulted in a very strong start to this year. We continued to perform on the top-line and also delivered our highest quarterly RPM ever.

In Q1, our consumer connections (traffic) was impacted by the expected positive development in partner traffic. The strong growth in RPM continued from H2/2021 and further demonstrates our increased ability to monetize consumer connections.

One of the main objectives with going public in Q2/2021 was to accelerate the execution of our growth strategy, which is focused on growing our customer and partner base, increasing our traffic and driving higher monetization of traffic. Since the IPO, we have further strengthened our leading market position by renewing our global agreements with Sony Music and Warner Music and have also expanded our agreement with Apple Music.

In Q2/2022 we took another major step in cementing our market position by signing a multi-year marketing and affiliate agreement with Amazon Music. Stronger affiliate collaborations enable the growth of our traffic commissions, as the majority of consumer connections still remain unmonetized. We will come back to the impact of this agreement on our performance in our next interim report, but would like to emphasize that this agreement is a perfect example of our ability to scale our business.”

Financial guidance for 2022
For the financial year 2022, Linkfire expects its revenue to be in the range of DKK 50-60 million, corresponding to a yearly growth of 48-78%, and its EBITDA to be a loss in the range of DKK 22-32 million. In order to achieve our guidance, performance on the following key drivers is required:

• Continued strong RPM performance
• Traffic growth and expansion of the discovery network
• Continued product innovation and development
• Continued inflow of new subscription customers and ability to upsell to existing customers

In 2022, Linkfire expects continued investments into reaching its mid-term growth target in accordance with the announced growth strategy in the IPO “(Initial Public Offering)” prospectus. Possible deviations from the guided range depend on investments into new strategic opportunities supporting our announced growth strategy.

Webcast with teleconference
A webcast and conference call is arranged on May 25, 2022 at 10.00 AM CEST. The presentation material for the webcast can be downloaded on https://investors.linkfire.com/ approximately 30 minutes before the webcast starts. A recording will be available on the investor website later the
same day.

Material and webcast link
bio.to/LINKFI_IR

Conference call details
US: +1 646 722 4902
UK: +44 333 300 9273
DK: +45 787 23 250
SE: +46 856 642 695

For further information, please contact:
Lars Ettrup, CEO, Linkfire
Telephone: +45 26 88 99 53
E-mail: [email protected]

Certified Adviser
Aktieinvest FK AB
Telephone: +46 739 49 62 50
E-mail: [email protected]