The first quarter January – March 2021
• Net sales amounted to SEK 357 M (305) an increase of 17% or 24% adjusted for changes in exchange rates compared to the same period last year.
• Gross profit was SEK 68 M (63), an increase of 8% or 14% adjusted for changes in exchange rates. Gross margin was 19.0% (20.7).
• Operating costs excluding depreciation and change related items were SEK 52M (49), an increase of 7% or 11% adjusted for changes in exchange rates.
• EBITDA amounted to SEK 14 M (14). Adjusted for change related items, EBITDA was SEK 16 M (14).
• Investments in immaterial assets, mainly related to product development, were SEK 7 M (6).
• Cash flow from operating activities was SEK -13 M (-4) and the sum of cash and interest-bearing financial assets was SEK 64 M (39) at the end of the first quarter. Net cash in the first quarter decreased by SEK -27 M to SEK -57 M.
• Earnings per share, before and after dilution were SEK -0.00 (-0.12).
Letter from the CEO
The year 2021 started with continued positive business momentum and good results for Tradedoubler. Adjusted for currency effects, revenue grew by 24% compared to last year to 358m SEK and EBITDA, adjusted for change related items, grew by 24% as well to 15,5m SEK. The increase of business is driven by most regions and especially by larger clients. Our influencer platform Metapic and the newly established self-serve platform for smaller clients, TD Grow, has showed good growth momentum during the quarter.
All regions except of the UK grew their revenues compared to last year, the largest increases are in DACH and in the Nordics. The different growth rates across the regions are mainly explained by the share of the travel segment in their client base. Before the covid-19 pandemic this segment has been particularly large in the UK, in France and in the southern region with Italy and Spain.
In the industry verticals we still see similar trends as we have since the beginning of the pandemic: travel is reduced to very low levels while all other ecommerce verticals continue to grow at good rates. Since mid-March travel increases slightly again but is still on low levels. Q1 was the last quarter with a non-covid / covid comparison.
Larger clients continued to allocate more budgets to affiliate marketing and increased their spendings with partners through our network. This has a large impact on the overall gross margin which has decreased compared to last year to 19% in Q1.
Operating costs increased compared to last year when we were very restrictive about investments due to the uncertain outlook. The increase of costs in 2021 is directly linked to new hires into the growing core business and the further expansion of Metapic and TD Grow.
In product development we have concentrated our efforts on usability and further improvements to our IT infrastructure. The migration of all our systems to the cloud means higher efficiencies and cost savings. The upgrades of our tracking capabilities protect our business against new browser and data protection regulations. In Q2 we will finalize the last parts of these large projects. From there we will operate on a completely re-built technology platform which is a strong asset for the company.
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.
Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00
Viktor Wågström, CFO, telephone +46 8 405 08 00
E-mail: [email protected]
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 18 May 2021. Numerical data in brackets refers to the corresponding periods in 2020 unless otherwise stated. Rounding off differences may arise.