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Linkfire’s (NASDAQ: LINKFI.ST) Year-end report 2022

“Revenue growth above 70% and substantially improved EBITDA ratio”

 Flash highlights Q4 2022:

  • Recognized revenue increased by 72 per cent to DKK 16.8M (Q4 2021: DKK 9.8M)
  • Gross profit increased by 90 per cent to DKK 13.3M (Q4 2021: DKK 7.0M) at a gross margin of 79 per cent
  • EBITDA improved by 49 per cent to negative DKK 5.4M (Q4 2021: negative DKK 10.6M)
  • EBITDA ratio* of negative 18%, an improvement of 87% to Q4 2021
  • Revenue Per Mille (RPM) increased by 88 percent to DKK 14.95 (Q4 2021: DKK 7.96)

* adjusted for one-time severance cost in the quarter

Quarter in review:

  • Revenue on a constant currency basis increased by 54 per cent to DKK 15.2M (Q4 2021: DKK 9.8M).
  • Recognized revenue increased by 72 per cent to DKK 16.8M (Q4 2021: DKK 9.8M).
  • The gross profit on a constant currency basis increased by 68 per cent to DKK 11.9M (Q4 2021: DKK 7.1M) at a gross margin of 79 per cent (Q4 2021: 72 per cent).
  • During the quarter the goal was to continue structuring 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 improved by 49 per cent compared to Q4 2021 at negative DKK 5.4M (Q4 2021: negative DKK 10.6M), and marked a 15% improvement to Q3 2022 EBITDA.
  • When adjusting for one-time severance cost in the quarter, EBITDA amounts to negative DKK 3.1M at an EBITDA ratio of negative 18%, an 87% improvement to Q4 2021.
  • Consumer connections increased by 7 per cent to 486M (Q4 2021: 454M), impacted by a significant decrease in partner traffic which has been sacrificed in the narrower focus towards platform utilization.
  • Following the uncompromising focus on profitability, consumer connections will see modest growth since the focus is monetizable traffic generating bottom-line contribution.
  • RPM increased by 88 percent to DKK 14.95 (Q4 2021: DKK 7.96), improving from DKK 6.46 in Q3 2022 and reaching the highest quarterly RPM in Linkfire’s history.
  • RPM growth is partially explained by decrease in partner traffic and seasonal effects. Partner traffic historically performed at a lower RPM. By reducing partner traffic, the average RPM increases.
  • Recorded DKK 1.1M in non-recurring revenue from deals aimed at increasing Monthly Recurring Revenue (MRR) through an expanded offering in 2023.
  • Financing of DKK 45M secured through a direct share issue to be carried out in two equal tranches. Tranche 1 completed during Q4 2022 and tranche 2 completion latest by April 2023. Elaborated description in “Going concern” section on page 10 and note 1 in the financial statements.

Lars Ettrup, CEO and Co-Founder, comments:

Continued focus on efficiency and on business initiatives with quicker rates of return led to improved performance across the organization. Traffic monetization agreements continued to pay off in Q4, leading to strong growth in commission revenue and RPM. Strong revenue growth, focus on financial sustainability through cost-cutting initiatives and platform growth generated strong EBITDA performance. Adjusted for one-off severance costs, the EBITDA ratio reached negative 18%, the best in Linkfire’s history and a significant step towards breakeven.

Shifting the main focus of the business towards profitability impacted various areas of the business, streamlining the organization and gearing it to drive value through immediate and sustainable growth. Subsequently, this has also meant the drawdown of unprofitable partner traffic agreements to ensure resources are placed in less capital-intensive areas with favorable return on investment perspectives.

Harnessing our internal potential while keeping our eyes on the growing and shifting market opportunities, we are convinced 2023 will be a year of new and great achievements for Linkfire, both operationally and financially.

Selected financial highlights and key figures

Q4 2022 Q4 2021 FY 2022 FY 2021
Key Metrics
Consumer connections (Traffic) 486,488,618 453,845,353 2,083,437,002 1,603,957,986
y/y Growth 7% 14% 30% 9%
Revenue, on constant currency basis (kDKK) 15,154 9,830 48,777 34,521
Revenue Growth 54% 26% 41% 42%
Organic Revenue Growth 54% 26% 41% 42%
Subscription Revenue, on constant currency basis (kDKK) 7,880 6,220 30,122 22,853
y/y Growth 27% 22% 32% 22%
Commission Revenue, on constant currency basis (kDKK) 7,274 3,610 18,656 11,667
y/y Growth 101% 33% 60% 108%
Commission Revenue per Mille (RPM)*,
on constant currency basis (DKK)
14.95 7.96 8.95 7.27
y/y Growth 88% 16% 23% 92%
Gross Margin, on constant currency basis 79% 72% 74% 72%
* Commission Revenue per thousand consumer connections
Income Statement (kDKK)
Recognized Revenue 16,793 9,756 52,590 33,697
Operating loss before interest, taxes, depreciation & amortization (EBITDA) (5,359) (10,559) (39,876) (30,512)

Financial guidance and results for 2022 (confirmed within guidance)
For the financial year 2022, Linkfire confirms its financial guidance revised in October totalizing the revenue 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 covered in the Q2 and Q3 interim reports, Linkfire reduced 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 included 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 was 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.
Guidance for 2023 will be released in connection with the publication of the annual report.
Webcast and report material
Linkfire hosts an interim report webcast for investors and media on February 23, 2023 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.

Link to report material:

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

Linkfire’s 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 2022, Linkfire enabled 2.1 billion consumer connections and the company’s revenue amounted to DKK 52.6M, an annual growth of 56 per cent. Co-founded in 2014 and headquartered in Copenhagen, Linkfire today employs a global team with 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 about us on and more about our offering on To keep up with our latest news, follow @Linkfire on LinkedIn and @getlinkfire on Twitter and Instagram.