TradeDoubler (TRAD) Q4 2024 earnings summary

Executive summary

• Revenue grew 6% year-over-year to SEK 2,113M, with Q4 revenue up 8% to SEK 619M; growth driven by strong performance in Influencer Marketing and recovery in Partner Marketing.

• Adjusted EBITDA for the year rose to SEK 96M (from SEK 92M), with Q4 adjusted EBITDA at SEK 41M (up 37% year-over-year).

• Influencer Marketing revenue surged 50% for the year and 54% in Q4, while Partner Marketing grew 4% annually and 6% in Q4.

• Net profit for the year was SEK -3M (down from SEK 25M), with EPS at SEK -0.07 (0.56); Q4 net profit was SEK -2M (13M), EPS SEK -0.04 (0.29).

• Rights issue raised SEK 50.5M, reducing debt by SEK 30M and adding SEK 20.5M in cash.

Financial highlights

• Gross profit increased 11% year-over-year to SEK 458M, with gross margin improving to 21.7% (from 20.8%).

• Operating costs excluding depreciation rose 20% to SEK 389M, mainly due to higher salaries and SEK 24M revaluation of KAHA GmbH acquisition.

• Adjusted EBITDA margin for the year was 4.5% (4.7%), with Q4 at 6.5% (5.1%).

• Cash flow from operating activities was SEK 56M (74M), impacted by a one-time SEK 20M payment to a publisher.

• Net cash at year-end was SEK 37M, up from SEK -5M; equity/assets ratio improved to 32.0% (28.9%).

Outlook and guidance

• Strategy targets tripling revenue to over SEK 6BN long-term, with continued international expansion and M&A focus.

• U.S. market entry planned for 2025, leveraging existing North American client base.

• All business channels expected to benefit from double-digit market growth in coming years.

• Long-term financial targets: net sales growth above 10% annually and ongoing profitability improvements.