ACROUD Q2 REVIEW
AT A GLANCE
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Affiliate Monitor Company-by-company Q2 results analysis
ACROUD Q2 REVIEW
AT A GLANCE
• Revenue hit an all-time quarterly high at € 10.3m , up 43 % YoY
• However , adjusted EBITDA was down 67 % YoY to € 1.6m
PAYING THE PRICE
While extolling the success in revenue and NDC terms , chief executive Robert Andersson noted it was the investment made in the paid media business that accounted for the year-on-year drop in adjusted EBITDA .
“ NDCs was record-breaking , and this is also then kind of reflected in our lower EBITDA because we invested heavily in acquiring these NDCs , and they are all on revenue share ,” he said . “ So , this is going to come back in our growth later on , but this is needed to hit our longterm targets .”
But the successes of recent acquisitions – particularly the affiliate service company Voonix and Matching Visions – come with their own complications around earnouts . “ All of these companies have outperformed our wildest expectations ,” Andersson noted . “ So , this is really good . We managed to do some really successful acquisitions . What this did lead to , though , is that we have very high earnouts .”
He noted this forced the company into initiating a written procedure with regard to its outstanding bond due to the unforeseen cash outflows . Acroud renegotiated all of the necessary deals and saw its contingent liabilities fall from € 26m , down to € 6.5m . “ That ’ s a massive figure to iGB Affiliate Monitor