TradeDoubler (TRAD) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 increased 3% year-over-year to SEK 481M; H1 2024 revenue up 8% to SEK 1,005M.

• Gross profit rose 8% in Q2 to SEK 108M, with gross margin improving to 22.5% from 21.2% last year.

• EBITDA for Q2 was SEK 14M (down from SEK 17M); adjusted EBITDA SEK 15M.

• Net profit for Q2 was SEK 1M, reversing a SEK 1M loss in Q2 2023; EPS for H1 2024 was SEK 0.04.

• Growth in new business lines (Metapic, Appiness, Grow) offset slower affiliate marketing; Metapic gross profit up 80% in Q2.

Financial highlights

• Q2 revenue: SEK 481M (SEK 469M in Q2 2023); H1 revenue: SEK 1,005M (SEK 928M in H1 2023).

• Q2 gross profit: SEK 108M (SEK 100M); gross margin 22.5% (21.2%).

• Q2 EBITDA: SEK 14M (SEK 17M); adjusted EBITDA SEK 15M (SEK 18M).

• Q2 operating profit (EBIT): SEK 2M (SEK 4M); H1 EBIT: SEK 11M (SEK 16M).

• Cash flow from operating activities in Q2: SEK -3M (SEK -12M); H1: SEK -6M (SEK 28M), impacted by a SEK 20M one-time payment.

Outlook and guidance

• Profitability measures are expected to take effect in coming quarters.

• Investment levels in new business lines to decrease as main efforts are completed.

• Long-term targets: net sales growth >5% annually in local currency and EBITDA/gross profit ratio >20% over a business cycle.