“Good top-line performance and very strong improvements on underlying growth levers such as our RPM metric, illustrating that we’re improving our ability to monetize traffic”.
All four quarters’ financial highlights and fourth quarter in review
Financial highlights of the full year
- During the year of 2021, recognized revenue grew by 36 per cent to DKK 33.7M (FY 2020: 24.7M).
- Revenue on a constant currency basis grew by 42 per cent to DKK 34.5M (FY 2020: DKK 24.3M). All revenue growth is attributed to organic growth.
- The growth was driven by a consistent performance on Subscription revenue growing 22 per cent while Commission revenue grew 108 per cent, mainly rooted in RPM growth.
- During the year of 2021, gross profit on a constant currency basis increased by 36 per cent to DKK 25.0M (FY 2020: DKK 18.4M) at a gross margin of 72 per cent (FY 2020: 75 per cent).
- Consumer connections increased by 9 per cent to 1,604M (FY 2020: 1,475M).
- RPM grew by 92 per cent to DKK 7.27 (FY 2020: DKK 3.80). No new major affiliate deals were entered during the year, thus the main growth driver is improvement of existing deals in H1 and product optimization in H2.
- All figures in the report have been reviewed by the company auditor, however figures are still subject to year-end closing audit and potential adjustments. Final numbers will be published with the annual report latest on April 6 2022.
Quarter in review
- The quarterly revenue growth profile during 2021 profile was more linear than in 2020. Q4 revenue accounted for 28 per cent of FY 2021 revenue (Q4 2020: 32 per cent).
- Q4 Recognized revenue increased by 26 per cent to DKK 9.8M (Q4 2020: DKK 7.8M).
- Revenue on a constant currency basis increased by 26 per cent to DKK 9.8M (Q4 2020: DKK 7.8M).
- The gross profit on a constant currency basis increased by 21 per cent to DKK 7.1M (Q4 2020: DKK 5.9M) at a gross margin of 72 per cent (Q4 2020: 75 per cent).
- Focus during Q4 was on expansion and solidification of the business, growing the team to 100+ (Q4 2020: 59) and setting the basis for the execution of our strategy in 2022.
- Q4 Consumer connections increased by 14 per cent to 454M (Q4 2020: 408M) largely due to an uptake in platform traffic in the quarter.
- RPM grew by 16 per cent to DKK 7.96 (Q4 2020: DKK 6.83), where Q4 2020 was a strong quarter in terms of RPM performance.
Lars Ettrup, CEO, comments:
“2021 was a great year for Linkfire, we are delivering on our strategy and I remain confident in our financial targets. We saw good top-line performance in line with our expectations and very strong improvements on underlying growth levers such as our RPM metric illustrating that we’re improving our ability to monetize traffic.
Looking into 2022 our focus and strategy remains unchanged and we maintain our mid-term financial targets of 50-70% revenue CAGR and approximately 80% gross margin. Supporting our vision of empowering entertainment discovery everywhere, we have a razor sharp focus on growing our traffic, increasing monetization and retaining our market position.”
Webcast with teleconference:
Today, 24 February, 2022 at 10.00 CET. The presentation will be held in English and will be available on https://investors.linkfire.com/ after the webcast with teleconference.
Speakers:
Lars Ettrup, CEO
Tobias Demuth, CFO
Link to webcast:
https://tv.streamfabriken.com/linkfire-q4-2021
For further information, please contact:
Lars Ettrup, CEO, Linkfire A/S
Telephone: +45 26 88 99 53
E-mail: investors@linkfire.com
About Linkfire A/S
Linkfire is the world’s leading SaaS marketing platform for the music and entertainment industries. Linkfire’s offering consists of two solutions: the Linkfire SaaS Marketing Platform for labels and artists and the Linkfire Discovery Network connecting consumers to music products through apps and partner websites. Linkfire’s platform has over 85,000 users, including the vast majority of the top 100 Billboard artists and largest record labels. In 2021, 1.6 billion consumers were connected through Linkfire and the company’s revenue amounted to DKK 33.7 million, corresponding to a year-on-year growth of 36 percent. Linkfire has more than 100 employees and is headquartered in Copenhagen, with additional offices in New York, Los Angeles, Lisbon and Accra. Linkfire (“LINKFI”) is listed on Nasdaq First North Premier Growth Market, Sweden. For further information, please visit: https://investors.linkfire.com/
Certified Adviser
Aktieinvest FK AB
Telephone: +46 739 49 62 50
E-mail: rutger.ahlerup@aktieinvest.se