Narrowing in on Profitability with Stabilized Cost Base

COPENHAGEN, DK / ACCESSWIRE / August 24, 2023 / Linkfire (STO:LINKFI) Flash highlights Q2 2023 compared to Q2 2022:

• Recognized revenue increased by 25 per cent to DKK 12.5 million (DKK 10.0 million)
• Gross profit increased by 53 per cent to DKK 10.5 million (DKK 6.9 million) at a gross margin of 84 per cent (68 per cent)
• EBITDA improved by 85 per cent to negative DKK 2.4 million (negative DKK 15.8 million)
• EBITDA ratio of negative 19%, an improvement of 88%
• Revenue Per Mille (RPM) increased by 51 percent to DKK 8.59 (DKK 5.70)
• Launched first-ever YouTube Music pre-save (July) and expanded into podcasts in an exclusive partnership with Apple (August)

Lars Ettrup, CEO and Co-Founder, comments:
In the second quarter of 2023, our company saw a significant positive development in earnings, with an 85% improvement in EBITDA compared to the same quarter last year. This improvement is a result of our focused commercial as well as corporate strategy and represents a major step in our plan to break even.

We are proud of our disciplined execution during the quarter. We remain committed to balancing growth and profitability, and we believe that our growth strategies, flexible operating model, and talented teams will drive profitable growth in the future.

Insights for the quarter:

• Earnings improved significantly as a result of a strategic focus to improve capital efficiency and thereby focusing on activities with short-term return profiles.
• Compared to Q2 2022:
  • EBITDA improved by 85% (EBITDA margin improved 138%-points)
  • External expenses were down 51%
  • Recorded revenue increased by 25%
• Paid partner traffic decreased by 190 million as a consequence of the strategic decision to discontinue this activity for the time being. This led to an overall decrease in consumer connections but an improvement in monetization metrics (RPM).
• Compared to Q2 2022:
  • Consumer connections decreased by 24%
  • RPM increased by 51%
• Future goal is to operate at the new cost base while maintaining steady revenue growth, improving earnings further.

Financial guidance and results for 2023

For the financial year 2023, Linkfire confirms its financial guidance released in April 2023, totalizing revenue in the range between DKK 60-70 million, corresponding to a yearly growth of 14-33%, and its EBITDA to be in the range of negative (DKK 5 million) and positive DKK 5 million.

During 2022, the Company has taken several initiatives to eliminate risk in the breakeven plan. Linkfire narrowed its operating focus to short-term return initiatives and the least capital-intensive deployment of cash. In 2023, Linkfire expects to utilize the lighter operating setup to perform EBITDA breakeven for the year.

The Company maintains its mid-term financial target of 20-40% organic revenue growth and a gross margin of approximately 80%.

Webcast and report material

Linkfire hosts an interim report webcast for investors and media on August 24, 2023, at 10.00 AM CEST. The report is presented by Lars Ettrup, Co-founder & CEO, and Tobias Demuth, CFO.

The presentation for the webcast can be downloaded 30 minutes before the webcast starts, and a recording of the event will be available after the webcast. The Q&A session is moderated through a chat function, which can be accessed via the webcast link below.

Link to register for webcast: https://lnk.to/Q2-23

After registration, you will receive a link to access the webcast via e-mail.

Link to report material: bio. to/LINKFI_IR

For further information, please contact:

Linkfire
Lars Ettrup, CEO, Linkfire
Telephone: +45 61 33 99 53
E-mail: investors@linkfire.com

Linkfire's Certified Adviser
Aktieinvest FK AB
Telephone: +46 739 49 62 50
E-mail: ca@aktieinvest.se

About Linkfire

Linkfire empowers music marketing for millions of artists and creators. Through smart links generated with its proprietary technology, Linkfire connects billions of fans with their favorite artists, driving streams, sales, and fan engagement, providing leading data insights, superior user experience, and a quality marketplace for fans, artists, and creators.

Linkfire's customers and partners count many of the biggest names in the industry, such as Apple, Amazon, Sony Music, Universal Music, and Warner Music, in addition to thousands of artists and creators directly.

Headquartered in Copenhagen, Denmark, and listed on Nasdaq First North Premier in Stockholm (LINKFI), you can find more information on investors.linkfire.com.

Attachments

Interim report Q2 2023
Linkfire In Review Q2 2023

SOURCE: Linkfire

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