Pareto summary on the results:
Net sales and gross profit
- Linkfire reported net sales of DKK 7.6m vs PAS at DKK 7.6m
- Net sales figure corresponds to total y/y growth of 42% (52% y/y on a constant currency basis)
- Main sales growth driver continues to be commission-based revenue, growing at 280% y/y (250% on a constant currency basis)
- Subscription revenue growth was 11% y/y (23% on a constant currency basis)
- Gross profit amounted to DKK 5.5m, compared with PAS at DKK 5.5m
- Gross margin slightly weaker at 72% compared with PAS at 73%
EBITDA
- EBITDA came in at DKK -11.5m vs PAS at DKK -9.0m – trailing our estimates by 28%
- EBITDA was negatively affected by approx. DKK 5.6m from IPO-related costs. Adjusted for this, the EBITDA amounted to DKK -6.0m (PAS est. DKK -3.4m).
- Difference between PAS estimates and reported EBITDA figures largpsely stemmed from total reported OPEX coming in above our expectations
Conclusions
- Strong topline development, despite currency headwinds negatively impacting subscription revenue
- Slightly higher OPEX than expected, causing larger than expected EBITDA loss
- Overall a good quarter, with Linkfire showing that it is on the right track in its growth journey
- We are not likely to make any major changes to the 2021 forecast, and where the share is currently priced, the results should not have a major impact on the valuation. We have a Buy rating with a target price of SEK 16.
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