Note: Avidly PLC publishes its official Nasdaq First North company news currently only in Finnish language. This news is an unofficial translated extract of the official company news. More investor information can be found at avidlyagency.com/fi/sijoittajille (in Finnish only).
Avidly (AVIDLY, Nasdaq First North in Helsinki) published 24.10.2018 its quarterly financial results for the end of third quarter of 2018. The results showed strong revenue growth of almost 30%, with improved profitability for the typically weak financial quarter.
- Revenues grew by 29.1% to EUR 4.0 million (3.1)
- Gross margin increased by 32.1% to EUR 3.3 million (2.5)
- Profitability was weakened by transaction costs due to acquisitions, which amounted to EUR 0.1 million (0.0)
- Operating profit (EBIT) (adjusted) was EUR 0.2 million (-0.1), or 4.0% of net sales (-2.6%)
- Operating profit (EBIT) was EUR 0.0 million (-0.1), or 0.7% of net sales (-2.6 %)
- Profit before taxes was EUR 0.0 million (-0.1)
- Earnings per share EUR 0,01 (-0,07)
- Revenues grew by 20.6% to EUR 13.7 million (11.3)
- Gross margin increased by 9.7% to EUR 10.3 million (9.4)
- Profitability was weakened by transaction costs due to acquisitions, which amounted to 0.2 million (0.0) of costs within the period and the restructuring of Avidly’s office in Turku in the Spring of 2018
- Operating profit (EBIT) (adjusted) was EUR 0.6 million (0.8), or 4.0 % of net sales (6.9%)
- Operating profit (EBIT) was EUR 0.4 million (0.8), or 2.8% of net sales (6.9%)
- Profit before taxes was EUR 0.3 million (0.6)
- Earnings per share EUR 0.14 (0.37)
Outlook for the year 2018 in full
We further estimate that in 2018, net sales will increase to approximately EUR 20 million (EUR 15.7 million in 2017). The gross margin is expected to be in the range of EUR 15.0 - 15.5 million (EUR 12.9 million in 2017). Operating profit without transaction costs is estimated to be 0.6 - 0.9 million euros. Operating profit is estimated to be 0.4 to 0.7 million euros (1.1 million euros in 2017).
CEO Tuomas Airisto:
"The third quarter marks as the start of Avidly's internationalization. We completed the transaction in the Nordics as planned, and operate now locally in Finland, Denmark, Norway, and Sweden. Simultaneously, Avidly became the world's leading HubSpot agency partner. This gives us significant new opportunities to carry out international growth.
Results by the end of the quarter were financially good, even though we spent a lot of energy completing our acquisitions and integrating businesses. Net revenues and gross margin increased – mainly due to acquisitions – by some 30%, and operating profit also increased to a slight positive for a typically challenging third quarter. Continuous services account now for a significant share of our business – offsetting the typically weak third-quarter net revenues and profitability, as well as improving the predictability of operations.
Mr. Jyrki Vaittinen started as Chief Operating Officer on October 1st, 2018 and will start as CEO as of January 1st, 2019. Account Director Ms. Teea Björklund was promoted to the Chief Operating Officer in Finland. I worked closely with the management team and am convinced that the changes in top management will go over smoothly – leaving Avidly in a very promising future.”
Avidly Corporation will publish its next half-year financial and annual results for the year 2018 approximately on March 7th, 2019.
For more information
Tuomas Airisto, CEO, +358 40 566 1331
Mikko Marttinen, CFO, +358 50 581 7669
Avidly is the leading Nordic HubSpot agency partner and marketing automation and full-service marketing agency listed on Nasdaq First North Marketplace in Helsinki. We are creating opportunities for growth that will lead our customers forward. Our task is carried out by about 250 people and in 15 locations across the Nordics.