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Linkfire’s (NASDAQ: LINKFI.ST) Q3 2022 interim report

“Promising growth across revenue streams and stable margins place us firmly on target to reach operational profitability in 2023”

Quarter in review

  • Revenue on a constant currency basis increased by 43 per cent to DKK 12.96M (Q3 2021: DKK 9.10M).
  • Recognized revenue increased by 65 per cent to DKK 14.64M (Q3 2021: DKK 8.80M).
  • New deals with Amazon and Apple started to take effect in Q3, driving substantial revenue growth in the period.
  • The gross profit on a constant currency basis increased by 54 per cent to DKK 10.01M (Q3 2021: DKK 6.544M) at a gross margin of 78 per cent (Q3 2021: 72 per cent).
  • During the quarter the goal was to structure the organization with a focus on driving value in the short and mid-term, including further cost reduction measures to shorten the estimated timeline to profitability.
  • EBITDA was neutral to Q3 2021 at negative DKK 6.16M which marks a 61% improvement to Q2 2022 EBITDA
  • Consumer connections increased by 51 per cent to 577M (Q3 2021: 383M), continuing to reflect the positive effects of investments in partner traffic.
  • RPM fell by 25 percent to DKK 6.46 (Q3 2021: DKK 8.62), rebounding from DKK 5.7 in Q2 2022. This is mainly due to a significant increase in new partner traffic, that is yet to be optimized for monetization.
  • Recorded DKK 2.93M in non-recurring revenue from deals aimed at increasing MRR through an expanded offering in 2023.
  • Over a period the Company has evaluated financing options in the range of DKK 40-50M. As of the reporting date of November 24th 2022, the financing has been concluded.
  • Evaluated revenue guidance and growth targets in light of tightening market conditions and the above mentioned focus on short term financial self-sufficiency.
  • Impairment loss of DKK 22.66M related to intangible assets in Q3. For further description of the matter reference is made to note 2 of the interim report.

Lars Ettrup, CEO and Co-founder, comments:
Focusing on cost control along with business initiatives with a quicker rate of return will ensure reaching profitability in 2023.

In Q3, revenue driven by our traffic commission agreements began to reveal its potential, showing healthy growth in consumer connections and traffic monetisation. In line with our adjusted revenue growth target of 20-40 per cent (previously 50-70 per cent), the organization continues to deliver value through proven, financially sustainable strategies, which in Q3 materialized in a 61% improvement of EBITDA compared to last quarter.

In addition to building momentum towards profitability through the streamlining of our organization and its cost base, our performance in Q3 keeps us in line with our financial guidance for the full year 2022. This is largely attributable to the positive impact of the new agreements with Amazon Music and Apple, both of which have continued to show increasing promise through Q3 and early Q4.


Selected financial highlights and key figures

  Q3 2022 Q3 2021 2022 YTD 2021 YTD FY 2021
Key Metrics
Consumer connections (Traffic) 577,245,887 383,013,333 1,596,948,384 1,150,112,633 1,603,957,986
y/y Growth 51% (6)% 39% 5% 9%
Revenue, on constant currency basis (kDKK) 12,957 9,080 33,712 24,690 34,521
Revenue Growth 43% 42% 37% 49% 42%
Organic Revenue Growth 43% 42% 37% 49% 42%
Subscription Revenue, on constant currency basis (kDKK) 9,227 5,780 22,330 16,634 22,853
y/y Growth 60% 19% 34% 22% 22%
Commission Revenue, on constant currency basis (kDKK) 3,730 3,301 11,382 8,057 11,667
y/y Growth 13% 115% 41% 180% 108%
Commission Revenue per Mille (RPM)*,
on constant currency basis (DKK)
6.46 8.62 7.13 7.01 7.27
y/y Growth (25)% 128% 2% 165% 92%
Gross Margin, on constant currency basis 78% 72% 73% 72% 72%
* Commission Revenue per thousand consumer connections
Income Statement (kDKK)
Recognized Revenue 14,642 8,880 35,911 23,942 33,697
Operating loss before interest, taxes, depreciation & amortization (EBITDA) (6,164) (6,193) (34,402) (17,164) (30,512)

Financial guidance (revised in October) and expectations for 2022 (maintained)
For the financial year 2022, Linkfire maintains its financial guidance revised in August expecting its revenue to be in the range of DKK 50-60M, corresponding to a yearly growth of 48-78%, and its EBITDA to be in the range of negative DKK 32-42M (until August: DKK 22-32M).

As a result of the adjusted focus initially covered in the Q2 interim report, Linkfire reduces its annual mid-term organic revenue growth target to 20-40 per cent (previously 50-70 per cent), while maintaining its mid-term gross margin target of 80 per cent. This adjustment includes staff reductions initiated to reduce the investment into further developing the Discovery Network, and an increased focus on yielding short-term value from the Marketing Platform for both the Subscription revenue and the Commission revenue.

The result of this is the main reason for adjusting our revenue growth target. Reversely, the remaining initiatives are proven and have shown faster-than-expected returns, providing confidence in our revenue guidance and allowing us to continue focusing on fewer initiatives that will return upside faster.

In order to achieve our guidance, continued strong RPM and subscription performance, as well as continued product maintenance, innovation and development are required.

Linkfire hosts an interim report webcast for investors and media on November 24, 2022 at 10.00 AM CET. 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:
After registration, you will receive a link to access the webcast via e-mail.

For further information, please contact:
Lars Ettrup, CEO, Linkfire
Telephone: +45 61 33 99 53

Certified Adviser
Aktieinvest FK AB
Telephone: +46 739 49 62 50

About Linkfire – Empowering Entertainment Discovery Everywhere
Linkfire makes entertainment marketing easy. We optimize impact, drive streams, increase ticket sales and recommend audio content to billions of fans and listeners on a global scale. Our SaaS marketing platform transformed music marketing and we are now building a global recommendation network for audio entertainment discovery to connect even more fans and listeners to the content they love. Linkfire’s customers and partners include most artists on Billboard’s annual HOT 100, all major music labels, global audio and music streaming services, social media apps and media publishers.

In 2021, Linkfire enabled 1.6 billion consumer connections and the company’s revenue amounted to DKK 34.5M, an annual growth of 42 per cent. Co-founded in 2014 and headquartered in Copenhagen, Linkfire today employs a global workforce and also has offices in New York and Los Angeles. Linkfire’s share (LINKFI) is listed on Nasdaq’s First North Premier Growth Market in Stockholm. Learn more at or follow @Linkfire on LinkedIn and @getlinkfire on Twitter and Instagram.