Financial Highlights:
- Total Revenue: EUR 21.5 million, marking an outstanding organic growth of 66% Y/Y.
- Adjusted EBITDA: EUR 5.6 million, a substantial 16.5% Y/Y increase.
- 2023 Guidance: On track to close the year with EBITDA between EUR 23-25 million and net cash flow in the range of EUR 13-15 million.
- Revenue Exceeds Expectations: Expected to surpass revenue guidance of EUR 65-70 million.
Raketech’s CEO, Oskar Mühlbach, expressed satisfaction, emphasizing the team’s exceptional performance, which reached all-time highs in revenue and organic growth. The success was attributed to robust demand for infrastructure solutions in sub-Affiliation and stable growth in the core Affiliation Marketing segment.
Q3 2023 Financial Highlights:
- Record Revenues: EUR 21.5 million, up 65.8% organically, with strong contributions from Casumba and sub-affiliation.
- Adjusted EBITDA Growth: 16.5% Y/Y to EUR 5.6 million, driven by strategic developments in Casumba and sub-affiliation.
- Guidance Confirmation: Confidently expecting to meet 2023 guidance, with EBITDA of EUR 23-25 million and net cash flow of EUR 13-15 million, exceeding revenue guidance.
The CEO highlighted the success of the flagship strategy, particularly in Casumba, contributing significantly to the Q3 revenues. Affiliation Marketing, focusing on established brands, showed stable growth, with revenues of EUR 9.5 million.
Market Dynamics and Initiatives:
- Nordic Market Performance: Slightly slower than expected, with ongoing investments and the initiation of a radio advertising campaign for Casinofeber.se.
- Sub-affiliation Success: Paid sub-affiliation (Network) demonstrated significant growth, with total revenues reaching EUR 11.1 million, a remarkable 264% annual increase.
- AffiliationCloud Growth: The SaaS platform, AffiliationCloud, reported an uptick in newly onboarded clients and doubled New Depositing Customers (NDCs) compared to Q2.
- US Market Challenges: The US market experienced a slower start, resulting in negative growth Y/Y, primarily due to underperformance in the Advisory Business Area.
- Strategic Initiatives: Launch of AI-driven Pick Prediction product and integration of a sophisticated CRM system, with key hires in SEO and Product Management.
Post-Quarter Developments:
- October Revenues: EUR 7.7 million, reflecting continued growth in Casumba and Sub-affiliation.
Financial Summary:
- Revenues (Q3): EUR 21.5 million (Y/Y growth: 65.8%)
- Adjusted EBITDA (Q3): EUR 5.6 million (Y/Y growth: 16.5%)
- Cash and Cash Equivalents (End of Q3): EUR 15.4 million
Outlook:Based on the strong development throughout the year, the company remains confident in its previously increased full-year guidance for 2023.
Analyst Note: Raketech’s Q3 performance demonstrates its resilience and strategic focus on high-margin segments. The challenges in the US market and the slower Nordic market dynamics are areas to monitor, while the continued success in Sub-affiliation and AffiliationCloud positions the company for future growth.
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