Tradedoubler Quarterly Report January - September 2024
The third quarter, July – September 2024
- Total revenue amounted to SEK 489 M (484) an increase of 1% or 2% adjusted for changes in exchange rates compared to the same period last year.
- Gross profit was SEK 107 M (98) an increase of 8% or 10% adjusted for changes in exchange rates. Gross margin was 21.8% (20.3).
- Operating costs excluding depreciation were SEK 88 M (77), an increase of 13% or 15% adjusted for changes in exchange rates.
- EBITDA amounted to SEK 18 M (21). Adjusted for change related items, EBITDA was SEK 19 M (21).
- Investments in immaterial assets, mainly related to product development, were SEK 8 M (10).
- Cash flow from operating activities was SEK 31 M (3).
- Earnings per share, before and after dilution were SEK -0.06 (0.13).
The interim period January - September 2024
- Total revenue amounted to SEK 1 494 M (1 411), which is an increase compared to the same period last year by 6% or 5% adjusted for changes in exchange rates.
- Gross profit was SEK 322 M (296) an increase of 9% and 8% adjusted for changes in exchange rates. Gross margin excluding change related items was 21.5% (21.0).
- Operating costs excluding depreciation were SEK 266 M (233), an increase of 14% or 14% adjusted for changes in exchange rates.
- EBITDA amounted to SEK 53 M (62). Adjusted for change related items, EBITDA was SEK 55 M (63).
- Investments in intangible assets, mainly related to product development, were SEK 30 M (28).
- Cash flow from operating activities was SEK 26 M (31). The main reason to the decreased cash flow relates to a one-time payment to a publisher that amounted to approximately SEK 20 M during the second quarter. The payment related to commission earned during previous years.
- Earnings per share, before and after dilution were SEK -0.02 (0.27).
- During the third quarter Tradedoubler initiated a rights issue of SEK 50,5 M which was fully subscribed. The accounting impact and the cashflow effect of this issue will be affecting the fourth quarter.
- During the second quarter Emailing Network was acquired from the principal owner of Tradedoubler for an amount of 180 000 EUR.
- During the first quarter Tradedoubler signed a short-term overdraft facility with its bank of SEK 15 M, at the end of the third quarter this facility was unused.
CEO Matthias Stadelmeyer’s comments
Tradedoubler’s business in the third quarter of 2024 saw an increase in revenue of 2% on a currency adjusted basis and 10% in gross profit (on currency adjusted basis). Adjusted EBITDA was 19 M SEK which is a slight decrease from 21 M SEK in Q3 of 2023.
These Q3 results are achieved in an overall challenging market environment in global e-commerce. Weak economies, high inflation rates and lower levels of income make consumers reduce consumption and brands earn less. As a result, we are experiencing challenges in some markets within our Partner Marketing business which declined slightly by 2% in gross profit. The Influencer Marketing business, Metapic, compensated this decline with a growth of 91% of gross profit. This growth is higher than the average of recent quarters and partly achieved by lower comparison numbers in Q3 2023. These numbers are all on currency adjusted basis as well.
While Q3 has shown strong increases in net sales in somes markets, other markets showed weaker growth rates or decline. Growth was achieved in the DACH region, the South and in UK & Ireland, whereas France & Benelux and the Nordics decreased by -14% and -5% respectively. R-Advertising and its email marketing business declined and is not as profitable as before.
Despite said challenges and market headwinds, we are well prepared for the upcoming quarters due to our diverse products, our growing market coverage and strategic enhancements of our business. Our unique product mix ranging from Partner Marketing, Influencer Marketing, App Marketing and other digital marketing business lines makes us less dependant on external economic factors.
Our new brand platform was launched in September of 2024 and has been received very well in our markets, both externally and internally. With our redefined strategy and stronger focus on the core of our business – boosting partnerships – we aim to produce considerable growth by growing our existing business and gaining market share, even if market environments remain challenging.
At this point I would like to thank the Tradedoubler team for standing behind our new brand strategy and the positive energy in “boosting partnerships”.
Contact information
Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00
Viktor Wågström, CFO, telephone +46 8 405 08 00
E-mail: ir@tradedoubler.com
Other information
Tradedoubler discloses the information provided herein pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was released for publication on 4th of November 2024 at 08.00 a.m. CET. Numerical data in brackets refers to the corresponding periods in 2023 unless otherwise stated. Rounding off differences may arise.
