Adverty

“Adverty tops competitors as the largest network for In-Play advertising according to Apptopia.”
 
It has been a year since I took on the role of CEO. What a year and what a journey we have made together. I am incredibly proud of everything we have achieved so far. Starting a new year after a fantastic fourth quarter is always challenging. I know what expectations there are for Adverty, and we are working hard to meet them. This year, it's all about continuing what we started in 2022, focusing on partnerships that generate incremental revenue and new publishers that give us a larger unique global reach.
 
The first quarter was the second-best in our history. With a turnover of SEK 4.5 million and an increase of 137% YoY, we are completely in line with the plan to reach SEK 50 million in total revenue for 2023, with seasonal index in mind.
 
Gross profit also increased significantly amounting to SEK 1.526 million compared to       SEK -0.055 million the same period last year, which gives a gross margin of 34% for the first quarter 2023. It is once again clear that we have significant scalability in our revenue model, demonstrating significant successes in everything, quarter after quarter.
 
That we continue to increase so significantly year after year is proof that we work systematically and purposefully with all relationships, new and old, and that we leave no stone unturned.
 
Speaking of new relationships, we have strengthened the sales side with new partnerships during and after the end of the first quarter: League-M in the DACH region, Bond Digital in Turkey, MediaFarm in Poland, and an expanded Azerion partnership in the USA. We also have new integrations with Loopme, ConnectAd, and Eskimi (our first directly integrated DSP). This allows us to work more actively with our game portfolio and create higher fill rates and higher prices when we can package all media more efficiently.
 
On a campaign level, we activated nearly 40 campaigns during the period, compared to seven campaigns during the same period last year, which testifies to the fact that the partnerships we have created are generating a lot of traction in the regions where they operate.
 
The second half of 2022 was an extreme period in terms of signing new game publishers, and 2023 has started in the same spirit. A total of 50 new games went live - 30 of these from existing and 20 from new publishers. Nine completely new publishers with a really good mix of different genres like sports, racing, and hyper-casual. Five of these nine publishers simultaneously activated more than one game at launch. Again, a strong message from our very competent supply team.
 
We have also presented the company at various events during the quarter. Mobidictum in Turkey, Pocket Gamer Connects in London, Gamesforum in Barcelona, and GDC in San Francisco. When we attend this type of event, it always opens up a lot of interesting opportunities, and in subsequent follow-ups, it very often becomes a deal.
 
Furthermore, we have had three roadshows where we have met buyers to educate and talk about concrete business opportunities. New York with IAB PlayFronts and 11 strategic meetings, Copenhagen where we met all media holding companies as well as several major direct customers, and Dubai where we helped our partner Yazle educate media buyers to better understand the product and service so that they can launch more In-Play campaigns at a faster pace in the future.
 
We continuously work on reviewing the performance of the platform, and the first quarter of this year has been no exception. We have looked at how data management can be further optimized and made a lot of adjustments resulting in lower costs for the operation of the entire platform. This will also enable us to accelerate the monitoring of an increased game portfolio.
 
Our collaboration with Scuti is progressing well, and together we have secured a number of publishers who want to proceed and conduct concrete tests. We will conduct tests during the second quarter to document how effective a combination of In-Play advertising and an integrated g-commerce product really is.
 
During the quarter, the company has secured a financing solution that I am very pleased with. This financing form gives the company access to long-term and stable financing, which is crucial for our future growth and development. By securing a stable and long-term financing form, we can also minimize the risks and uncertainties associated with short-term financing. This provides us with a strong foundation to build our business on and creates opportunities to take initiatives that will lead to further development and growth.
 
With what we have delivered so far this year, there is only one way forward, and that is upwards.
 
My final words will be: "Do More - Make It Count."
 
 
Jonas Söderqvist
CEO
Adverty AB (Publ)