Tradedoubler. Interim report January-March 2014 May 6, 2014

Transcription

1 Tradedoubler Interim report January-March 2014 May 6,

2 Agenda Introduction of new acting CEO Q1 in brief Q1 Financials Going Forward Q&A Tradedoubler in brief 2

3 Matthias Stadelmeyer Acting CEO since April 22 Almost 7 years within Tradedoubler in several leading positions Two years in London as Vice President Technology Most recently Regional Director DACH and Vice President Operations Began his professional career as Team leader for Online Marketing at CANCOM IT Systeme AG in Munich 3

4 Q1 in brief Financials Decreasing net sales, partly offset by lower costs Net sales were SEK 445 M, down 19% currency adjusted. Almost half of the decrease explained by the below previously communicated factors; reduction in France, driven by large losses in the channel lower revenues from two large pan-european customers closing of campaign business and some offices in recent restructure Gross margin 22.7% (22.6%) and gross profit SEK 101 M, down 18% currency adjusted Operating costs SEK 89 M (100), reduced due to recent restructure EBITDA was SEK 12 M (19), reduced cost compensated more than half of the gross profit decline Cash and financial investments totalled SEK 429 M at quarter-end, a solid financial position 4

5 Q1 in brief Operational Large organisational changes Restructuring launched year-end 2013 was executed according to plan. Main components are: Danish and Finnish operations run from Stockholm More admin functions handled through the central support centre CPL business integrated into performance marketing in most markets Campaigns business (CPM/CPC) closed in most markets Core business is Performance marketing Affiliate Network and Technology Headcount end of Q1 was 367. Down 82 versus year-end due to recent restructure and closure of Campaigns business Partly new management team in place with new CFO and CRO Product development continues to improve our unique Network & Technology offering - focus in Q1 was on Mobile tracking capabilities and the usage of data in performance marketing 5

6 6 Q1 Financials

7 Net Sales and Gross Profit Declining revenue, but stable gross margin Net Sales (SEK M) Q113 Q213 Q313 Q413 Q114 Q1 net sales SEK 445 M, down 16% y-oy and 19% currency adjusted. Almost half explained by previously communicated factors, see slide 4 Q1 and Q4 normally the strongest quarters due to seasonal variations Gross Profit (SEK M) Gross Margin stable at 22.7%.Gross Profit at SEK 101 M, down 15% y-o-y and currency adjusted -18% Gross Profit related to the above mentioned pan-european customers amounted to SEK 5 M in Q1 and ceased during the latter part of the quarter. 0 Q113 Q213 Q313 Q413 Q Gross profit Gross margin, % 7

8 Operating Costs and EBITDA Reduced operating costs compensating partly for decreasing gross profit Operating Costs (SEK M) 121 Q1 operating costs was SEK 89 M, down SEK 11 M versus Q1 last year mainly due to recent restructuring Costs still expected to decrease with SEK 55 M on an annual basis with full impact from 2H Q113 Q213 Q313 Q413 Q114 Operating costs, excl. dep & amort Change related costs Operating cost in Q lower due to seasonal variances EBITDA (SEK M) Q1 EBITDA was SEK 12 M (19), reduced cost compensated more than half of the gross profit decline versus Q1 last year EBITDA Change related costs Q113 Q213 Q313 Q413 Q114

9 Cash Flow and Financial Position Positive cash flows last 12 months and strong financial position Q114 Cash Flow, SEK M Q113 Q413 Q LTM EBITDA Non cash items Paid tax Changes in WC CF from operations CAPEX non fin assets CAPEX fin investments Financing activities Delta Cash excl FX FX revaluation Delta Cash Financial Position, SEK M at end period Cash Financial investments Cash and Fin investm Bond loan Net Cash Q1 cash flow SEK -132 M, due to normalization of working capital and further investments in financial assets Cash flow from operations last 12 months amounted to SEK 46 M Total cash and financial investments at end of Q1 was SEK 429 M Strong net cash position, SEK 184 M at quarter-end 9

10 10 Going forward

11 Tradedoubler Going Forward Substantial potential for further improvement Revenue improvements and operational efficiency are top priorities and several projects were already initiated in Q1 Substantial potential for further improvement Internally: Processes and structure Externally: Positioning and product offering Key data sources indicate market growth Matthias Stadelmeyer, Acting CEO: Our solid financial position, active owners, dedicated personnel as well as our strong product offering and large pan European network of advertisers and publishers give us a good foundation to increase market share and turn the negative revenue trend around. 11

12 Q&A s Q2 report July 25 12

13 Tradedoubler in brief A leading European Performance Marketing company Tradedoubler runs performance marketing solutions for over advertisers through its network of more than publishers in over 30 countries The company gets a commission for successful transactions, normally a consumer purchase generated through the ads on the publishers site In 2013 Tradedoubler generated SEK 27 billion in incremental sales for its clients Tradedoubler is the only company offering both a full affiliate network product as well as an affiliate technology solution Annual revenues were 2 billion in The company has offices in 11 countries and around 370 employees 13