TradeDoubler (TRAD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 2% year-over-year to SEK 532M, with gross profit up 11% to SEK 118M and gross margin improving to 22.2% from 20.4%.

• Adjusted EBITDA rose to SEK 26M (from SEK 22M), and EPS increased to SEK 0.20 (from SEK 0.03).

• Partner Marketing revenue was stable at SEK 487M, while Influencer Marketing (Metapic) grew 21% to SEK 46M.

• Margins improved due to higher contributions from high-margin business areas and cost discipline.

• Strategic expansion included a new US office in Miami to drive North American and Latin American growth.

Financial highlights

• Gross margin increased to 22.2% (20.4%), and EBITDA margin (adjusted) reached 4.9% (4.2%).

• Net profit was SEK 12M, up from SEK 1M year-over-year.

• Cash flow from operating activities improved to SEK 10M (from -2M), with net cash at SEK 9M (from -31M).

• Equity/assets ratio rose to 36.1% (31.2%), and return on equity (12 months) was 2.0% (5.8%).

• Investments in intangible assets, mainly product development, were SEK 7M (10M).

Outlook and guidance

• Management expects improved growth in Metapic and continued margin improvements.

• Confident in delivering another year of growth, supported by brand strength and strategic investments.

• Long-term targets: annual revenue growth above 10% (local currency) and EBITDA/gross profit ratio above 25% over a business cycle.