Update on COVID-19
Speqta (”SPEQT”) is closely monitoring the development of the spread of COVID-19 and the impact on its business. Speqta has taken proactive measures to reduce the risk for the staff and secure business continuity. All employees work from home since 16 March and day-to-day operations are unaffected thanks to the digital nature of the business.
January and February were mostly unaffected by the COVID-19 pandemic. In March Speqta has seen mixed financial impact from the COVID-19 pandemic. In March the trend of increasing e-commerce and online advertising spend has intensified while loan brokerage and loan affiliation business has experienced a decline.
Speqta’s CEO Fredrik Lindros comments:
Normally we do not comment on results before the quarterly report, but these are not normal times. The COVID-19 virus is affecting our business short term both positively and negatively. We are taking advantage of the robust trend of increasing e-commerce and online advertising spend and we are confident to meet our long-term goals, aiming to reach 600 MSEK in revenue with an organic CAGR of at least 20% within the next three years.
IMPACT ON SEGMENTS IN MARCH
Speqta Content & Comparison
Consists of three verticals: Personal finance, Food & Beverage and Vouchers & Best-in-test. This includes partnerships for media houses Affilijet, Vinklubben, Speqta’s independent brands and sites, and Rahalaitos. Rahalaitos is Finland’s strongest online loan brokerage brand which was acquired on 31 January 2020.
- Personal finance: The loan market is impacted by lower demand for loans as well as changed qualification requirements from loan providers. This has negatively impacted Rahalaitos and our affiliation sites.
- Food & Beverage: Vinklubben positively impacted due to a change in consumer consumption with less restaurant visits.
- Vouchers & Best-in-test: A high exposure to travel and hotels where demand has dropped while other discount codes is taking advantage of the trend of increasing e-commerce.
Speqta AdTech
Consists of Shopello, online performance-based marketing with more than 3,000 e-commerce stores spread across 17 countries in Europe. The AI engine Shopello BidBrain™ was launched early 2020. Shopello’s volumes have developed favourably in March following the trend of increased e-commerce. However, some customers have reduced or stopped marketing spend, in particular retailers with both physical stores and e-commerce.
IMPACT GOING FORWARD
The loan market is affected by the quarantine actions and the economy in general, and it is too early to estimate the length and magnitude of the COVID-19 situation. Speqta expects the robust trend of increasing e-commerce and online advertising spend to remain. However, Speqta has experienced a changed environment in reaching out to potential new customers with Shopello BidBrain™ since clients decline meetings due to COVID-19. This might short-term impact top line growth but not mid-term since the AI engine Shopello BidBrain™ is the future of Google advertising.
Speqta’s CEO Fredrik Lindros continues:
The Shopello BidBrain™ platform, where customers only pay for advertising that generates sales, has been a success. It gives our customers risk-free advertising, increasing their sales but not their cost of sales. Appreciated in these times, but many customers are reluctant to switch solutions or making changes in uncertain times. We expect that to change after the current situation has stabilized.
This information is such information that Speqta AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the agency of the contact person below, for publication on April 2 2020 at 09:30 CET
FOR FURTHER INFORMATION, PLEASE CONTACT:
Fredrik Lindros
CEO Speqta AB (publ)
fredrik.lindros@speqta.com
+46 723 10 66 66
ABOUT SPEQTA
Speqta offers the best performance-based lead generating platforms using data and AI and to grow organically as well as through acquisitions in new and existing markets. Speqta has two business areas Speqta AdTech and Speqta Content & Comparison. The company is listed on Nasdaq First North Premier Growth Market in Stockholm under the ticker “speqt”. The company’s Certified adviser is Västra Hamnen Corporate Finance AB, telephone number: +46 40 20 02 50, e-mail: ca@vhcorp.se