Tradedoubler Year-End Report January – December 2021

The fourth quarter, October – December 2021

• Total revenue amounted to SEK 414 M (359) an increase of 15% or 17% adjusted for changes in exchange rates compared to the same period last year.
   
• Gross profit was SEK 75 M (68). Adjusted for change related items gross profit was SEK 77 M (68) an increase of 14% or 15% adjusted for changes in exchange rates. Gross margin was 18.1% (18.9). Gross margin adjusted for change related items was 18.5% (18.9).
   
• Operating costs excluding depreciation and adjusted for change related items were SEK 57 M (50), an increase of 14% or 15% adjusted for changes in exchange rates.
   
• EBITDA amounted to SEK 18 M (17). Adjusted for change related items, EBITDA was SEK 20 M (18).
   
• Investments in immaterial assets, mainly related to product development, were SEK 7 M (7).
   
• Cash flow from operating activities was SEK 45 M (49). Changes in working capital impacted the cash flow with SEK 31 M (37), which relates mainly to the seasonality of our customers´ payment patterns.
   
• Earnings per share, before and after dilution were SEK 0.19 (0.21).

The full year 2021

• Total revenue amounted to SEK 1,421 M (1,235), which is an increase compared to the same period last year by 15% or 18% adjusted for changes in exchange rates.
   
• Gross profit was SEK 277 M (255). Gross profit adjusted for change related items was SEK 279 M (255) an increase of 10% and 13% adjusted for changes in exchange rates. Gross margin excluding change related items was 19.5% (20.6).
   
• Operating costs excluding depreciation and adjusted for change related items were SEK 212 M (191), an increase of 11% or 13% adjusted for changes in exchange rates.
   
• EBITDA amounted to SEK 61 M (62). Adjusted for change related items, EBITDA was SEK 67 M (64).
   
• Investments in intangible assets, mainly related to product development, were SEK 27 M (24).
   
• Cash flow from operating activities was SEK 54 M (89) and the sum of cash and interest-bearing financial assets was SEK 94 M (89) at the end of the period. Net cash in end of the year was SEK 1 M (-30).
   
• Earnings per share, before and after dilution were SEK 0.53 (0.16).
   
• 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. The divestment of shares increased the results by SEK 9.3 M, where of SEK 2.7 M is the estimated result of the earn-out, and yet to be settled. The earn-out was revaluated in the fourth quarter as the full earnout is expected, resulting in a gain of SEK 1.6 M.

CEO Matthias Stadelmeyer’s comments

Tradedoubler´s results in Q4 continued to develop positively and we are looking back at a successful year 2021.

In Q4 2021 total revenue grew by 17%, gross profit by 14% as well and EBITDA increased to SEK 20M on currency adjusted comparison and without change related items.

It is good for us to see that we were able keep our positive business momentum in this important fourth quarter although market signals indicated slower growth rates for the Black Friday week and Christmas sales. Our results for Q4 are consistently good across all regions and our four key industry verticals retail, fashion, electronics and travel.

In Q4, and for the whole year as well, our core business affiliate marketing including

TD Grow and the influencer platform Metapic both contributed to the growth. Metapic has for the third year in a row more than doubled its annual revenue compared to the year before.

Operating costs increased by 15% mainly due to investments into Metapic, TD Grow and product development and our EBITDA margin is with 4,9% similar to last year and the full year 2021.

Net profit for the year 2021 increased to SEK 24M and net cash of the company is positive for the first time since long.

The sale of shares in Dynadmic was a good contribution increasing cash by SEK 17.6 M and net profit by SEK 9.3M. The cash was used to amortize part of the interest-bearing loan improving our capital structure and reducing the tax effect of negative net interest.

We see ourselves well-prepared for the coming quarters while we continue our mission to grow the business of our clients and partners in the best possible way to create meaningful results for all stakeholders. We do that with passion and courage and I look forward to your continued 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 11 February 2022. Numerical data in brackets refers to the corresponding periods in 2020 unless otherwise stated. Rounding off differences may arise.