Tradedoubler Interim Report January - September 2021

The third quarter July – September 2021

• Total revenue amounted to SEK 317 M (285) an increase of 11% or 12% adjusted for changes in exchange rates compared to the same period last year.
• Gross profit was SEK 67 M (59), an increase of 13% or 14% adjusted for changes in exchange rates. Gross margin was 21.0% (20.7).
• Operating costs excluding depreciation and change related items were SEK 52 M (42), an increase of 24% or 25% adjusted for changes in exchange rates. 
• EBITDA amounted to SEK 13 M (16). Adjusted for change related items, EBITDA was SEK 15 M (17).
• Investments in immaterial assets, mainly related to product development, were SEK 7 M (6).
• Cash flow from operating activities was SEK 15 M (15).
• Earnings per share, before and after dilution were SEK 0.00 (-0.07).

The interim period January – September 2021

• Total revenue amounted to SEK 1,007 M (877), which is an increase compared to the same period last year by 15% or 19% adjusted for changes in exchange rates.
• Gross profit was SEK 202 M (187), an increase of 8% and 12% adjusted for changes in exchange rates. Gross margin was 20.0% (21.3).
• Operating costs excluding depreciation and change related items were SEK 155 M (99), an increase of 10% or 13% adjusted for changes in exchange rates. 
• EBITDA amounted to SEK 43 M (45). Adjusted for change related items, EBITDA was SEK 47 M (46).
• Investments in intangible assets, mainly related to product development, were SEK 22 M (17). 
• Cash flow from operating activities was SEK 10 M (40) and the sum of cash and interest-bearing financial assets was SEK 78 M (56) at the end of the interim period. Net cash in end of the interim period was SEK -37 M (-74).
• Earnings per share, before and after dilution were SEK 0.34 (-0.06).
• In 2016 Tradedoubler acquired a minority stake in DynAdmic for a total amount of EUR 1,2 M. In June 2021 these shares were sold to Smart, a leading independent French adtech platform, for a total potential amount of EUR 2 M. Around EUR 1.75 M were received in July 2021 as an upfront payment and a possible earnout of EUR 0.25 M depends on future results of the company. This deal resulted in a gain of SEK 7.7 M for the interim period.

CEO Matthias Stadelmeyer’s comments

Tradedoubler´s positive business momentum continued in the third quarter 2021 similarly to the quarters before.

In Q3 2021 total revenue grew by 12%, gross profit by 14%, while EBITDA slightly decreased to 15m SEK on currency adjusted comparison and without change related items. 

Due to seasonality clients booked less media promotions in Q3 which reduced the revenue growth and improved the margin. Last year media promotions were larger as part of the covid-19 strategies of clients. The good GP growth of 14%, which was the highest in more than 10 years, is linked to good performance of the core affiliate business, the influencer platform Metapic and the affiliate self-service platform TD Grow. 

Operating costs increased by 25% mainly due to investments into Metapic and TD Grow. We are around 20 employees more than last year and have slightly increased product development expenses. Further to this we benefited from some covid-19 measures like reduced social costs and reduced working hours in a material way last year. 

Our EBITDA margin of 4,7% is comparable to the last quarters and years, but for the above-mentioned reasons lower as in Q3 2020 (6,1%).

Similar to the quarters before all regions develop positively except of the UK, with the DACH region, France and the Nordics being the main growth drivers. 
In the industry verticals, all relevant verticals develop positively with the biggest gain in Fashion. Travel increase slightly compared to last year, but still significantly lower than before covid-19. 

In October we finalized the migration of Tradedoubler´s technical infrastructure to the cloud and away from on-premise-servers. This migration is a large milestone for product development. We are now working with state-of-the-art systems and infrastructure across our whole portfolio which will speed up development time and reduce infrastructure and development costs. 

We continue our mission to grow the business of our clients and partners in the best possible way and create meaningful results for all stakeholders. We do that with passion and courage, and I look forward to your company on this journey.
 

Contact information

Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00   
Viktor Wågström, CFO, telephone +46 8 405 08 00   
E-mail: [email protected]

Other information

This information is information that Tradedoubler AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on 10 November 2021. Numerical data in brackets refers to the corresponding periods in 2020 unless otherwise stated. Rounding off differences may arise.