The second quarter, April - June 2024

• Total income amounted to SEK 481m (469), an increase of 3% or 1% adjusted for changes in exchange rates compared to the same period last year.

• Gross profit was SEK 108m (100), an increase of 8% or 7% adjusted for changes in exchange rates. The gross margin was 22.5% (21.2).

• Operating costs excluding depreciation and adjusted for change related items were SEK 93m (83), an increase of 14% or 13% adjusted for changes in exchange rates.

• EBITDA amounted to SEK 14 M (17). Adjusted for change related items, EBITDA was SEK 15 M (18).

• Investments in immaterial assets, mainly related to product development, were SEK 10 M (9).

• Cash flow from operating activities was SEK -3 M (-12).

• Earnings per share, before and after dilution, were SEK 0.01 (-0.03).

The interim period, January - June 2024

• Total revenue amounted to SEK 1,005 M (928), which is an increase compared to the same period last year by 8% or 6% adjusted for changes in exchange rates.

• Gross profit was SEK 215 M (198), an increase of 9% or 6% adjusted for changes in exchange rates. Gross margin was 21.4% (21.3).

• Operating costs excluding depreciation and adjusted for change related items were SEK 180 M (157), an increase of 15% or 14% adjusted for changes in exchange rates.

• EBITDA amounted to SEK 35 M (41). Adjusted for change related items, EBITDA was SEK 36 M (42).

• Investments in intangible assets, mainly related to product development, were SEK 20 M (17).

• Cash flow from operating activities was SEK -6 M (28). The main reason for the decrease in cash flow is due to a one-off payment to a publisher of approximately SEK 20 M in the second quarter, payment related to commission earned in previous years.

• Earnings per share, before and after dilution were SEK 0.04 (0.13).

• During the second quarter all shares in Email Network, a previously owned company, were acquired by the principal owner of Tradedoubler for EUR 180,000.

• During the first quarter Tradedoubler signed a short-term overdraft facility with its main bank of SEK 15 M, at the closing date this facility was unutilised.

Letter from the CEO

Tradedoubler's operations in the second quarter 2024 developed in line with the beginning of the year. Revenues were flat in the second quarter while gross profit increased by 7% on a currency adjusted basis. Adjusted EBITDA is SEK 15 M and SEK 3 M lower than in the comparative period. The lower growth rate in gross profit and the lower EBITDA are largely linked to our French subsidiary R Advertisingwhich is active in Email Marketing. This effect is expected to end as of Q3 2024. Furthermore, we had lower business momentum in our core business affiliate marketing. This is linked to the external market environment with weaker consumer spending and reduced advertising spend. Our new business lines Metapic, Appiness and Grow developed in line with previous quarters and in line with our expectations. As this business outperformed affiliate marketing, our gross margin increased to 22.5% from 21.2% in the comparable period last year.

Regions & Products

Except of France, which includes the impact on R Advertising, all regions show continued healthy growth rates in revenue and stable EBITDA contribution. The DACH region and to some extent the Nordics have also been affected by the negative development of affiliate marketing. Revenue is affected more than gross profit as the decline in business mainly comes from larger clients and reduced budgets of clients. The gross profit from the influencer network Metapic grew by 80% in Q2 which is a further acceleration compared to the previous quarters. Our self-service affiliate platform Grow grew gross profit by 45% and the app marketing platform Appiness grew gross profit by 21%. With these growth rates, the new business lines contribute significantly to our growth.

Margins

The increase in gross margin to 22.5% is mainly due to the weaker performance of affiliate marketing, which has lower margins than the new and fast-growing business areas. The adjusted EBITDA margin has decreased to 2.8% as the slower development of the business directly affected our EBITDA result. The actions we have taken to raise profitability levels have partially had an impact but are expected to have a greater impact in the future. While we continue to invest into our business both for affiliate marketing as well as for the new business lines, we see that the main efforts are taken by now, these investment levels will be smaller.

Market

The external market environment continues to be difficult with lower consumer confidence and reduced investment by advertisers. Increased regulation by authorities and continued technical changes by dominant market players like Google or Apple influence digital marketing significantly and require us to be innovative and agile. While these challenges are clearly visible in our industry, we do not see an effect on our business for the time being. Our portfolio of performance marketing solutions seems to match the needs of our clients for results-focused marketing campaigns. Our proprietary platform and strong technical capabilities help us to adapt to a changing environment. Our vision is to generate more revenue for our clients than any other partner and we are receive encouraging signals from our clients that we are on a good way.

I want to thank my colleagues across all markets and units for their commitment to our business and their great contribution. Their energy drives our success.

Contact information

Matthias Stadelmeyer, President and CEO

Phone +46 8 405 08 00

Viktor Wågström, CFO

Phone +46 8 405 08 00

E-mail: ir@tradedoubler.com

Other information

Tradedoubler discloses the information provided herein pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was released for publication on 19 July 2024 at 08.50 CET. Numerical data in brackets refers to the corresponding periods in 2024 unless otherwise stated. Rounding off differences may arise.