Hello everyone, a warm welcome to Copenhagen and Linkfire's Q1 Results Webcast. My name is Laura Lindholm, and I'm the Head of IR and Corporate Communications. This morning we have shared good news. We have had a very strong start to the year, and with me here today I have our CEO and Co-founder, Lars Ettrup, and CFO, Tobias Demuth, to explain to you our development during Q1. First I would like to take you through some practicalities. We have a conference call at the end related to the Q&A, and these are the dial-ins for that part. It's also possible to get all of the material related to the report from one place. It's a web link, so you can just use the link you see here on the slide to download the presentation and the report. Now I hand it over to Tobias and Lars, please. Yes. Thank you, Laura. Let's switch slides, Tobias. Yes. Hi everyone, welcome to our Q1 Earnings Call. Presenting today are me, Lars Ettrup, CEO and Co-founder, and with me I have Tobias as well. I'm quite excited for today's earnings call. Just reiterating what Laura said, we had a strong start to the year that saw us performing on our guidance, and we've seen great numbers in our strategic growth areas. I'm in particular proud because in these times and in the market today where there's great uncertainty, I'm quite proud of our achievements. Today's agenda, we will go through business strategy and market updates. We'll go through some business highlights, financial performance, and then of course an outlook, and then we'll finish up with a Q&A where you are more than welcome to enter questions with the details that Laura gave just before. Let's kick it off. All right. Business strategy and market updates. First of all, just reiterating our value proposition and our business model. At Linkfire, we are building the largest recommendation network for music and entertainment. Our core value proposition is that we provide links and technical integrations that connects consumers fast and frictionless to music and entertainment online. We do this because the entertainment and media, and music landscape are changing. We are seeing that consumers and fans are discovering and consuming music and entertainment, not just in streaming services, but also across the open web, in social media and in gaming platforms. The whole landscape is becoming more and more complex, and there's a need for a simple solution like Linkfire to basically connect people into these entertainment services. Our business model is that we send consumers to these streaming services, and we make money whenever we drive new sales or sign-ups. Our products generate traffic in the billions, and they're used daily by top artists, record labels, and big social media platforms. Next slide. Today, we connect billions of consumers to entertainment. Last year, we connected 1.6 billion consumers, and these connections happen through two offerings at the moment. Right, one is our marketing platform, another one is our discovery network. Our marketing platform are used by major record labels and top artists globally. Our discovery network spans across a range of social media websites, social media applications, different publisher websites, and so on. Before we move on to the market updates, I just quickly wanted to address the war in Ukraine. We stand with all the people affected and condemn the war in Ukraine. We continue to support our employees and partners that are directly or indirectly affected or impacted. From a business risk point of view, North America is our largest geographical market, followed by EMEA. Our financial exposure to Russia is very limited. We do not have any organizations or local organizations in Russia or Ukraine, but most of our industry partners have already decided to self-censor. We of course monitor our technology to ensure that it's not used to spread misinformation. Following up with the market updates, we continue to see an optimistic market with three major market developments. One, and it's the one I'll cover a little bit more in depth later, is the increased competition for streaming subscribers. The fight for market share is fueled by subscriber growth, and we see an increased competition, and this is expected to lead to an increase in the cost to acquire leads for growth, so an increase in cost for leads for these streaming services. The second market development that we are seeing is obviously that music is transcending traditional streaming. I touched upon that before, but what we are seeing is that music is now being discovered and consumed not just in streaming services, but also across social media, across different applications. We're also starting to see live events, concerts, and so on in different gaming platforms. We do expect this trend to continue. We also still see that lowered attention span in humans. That means that we have more things to enjoy and to engage with, and that means that we have less attention to discover new things. Therefore, there is a need for someone like us to provide a simple solution, so we can help consumers find the most relevant content and entertainment out there. If we touch a little bit on the streaming subscriber opportunity here. Right now, if we zoom in on that, we still see a really strong growth opportunity here. The subscriber market is set to increase with another 600 million until 2030. That for us represents an annual opportunity of $2.3 billion. It's also expected that around 100-150 million users will switch services every year, which represents an additional $4.5 billion opportunity for us every year. If you look at our strategic growth focus and what we've been delivering on, Tobias will touch a little bit more on that. We will continue to monetize and grow our consumer connections. We will continue growing our RPM, which is one of our underlying growth levers in terms of monetizing our traffic. This is done by enhancing, optimizing our product, but also by signing new deals and increasing our relationship and partnerships with big streaming services such as Amazon Music, which we just announced here, I believe it was earlier this month. We will also keep growing the consumer connections, expand our footprint, i.e., grow our traffic, and that means that we will develop the roster of different partners we have, ranging from publisher websites to big social media applications as well. We will also keep focusing, evolving on our marketing platform and expand our industry footprint here. We have yesterday announced an extension or expanded our Apple Music data agreement, which sees more insights being delivered to artists and labels and increasing our value proposition on the marketing platform. Finally, we will also, you know, be looking at the EBITDA break even in 2023. We want to run a sustainable business, and that is a core strategic growth focus of ours as well. We, of course, also look at additional opportunities all the time. We've talked many times about vertical expansions. Here, spoken word is the most obvious one for us to move into, spoken word being audiobooks and podcasts, and it's something that we are very diligently looking into. We're also looking very interestingly into the metaverse as we see more and more of the next generation of consumers are engaging more and more in these kind of open worlds, whether it's Roblox or Fortnite and so on. We want to have a strong offering in these worlds as well. It represents a really big opportunity for us. M&A agenda, we continue to explore. We did not, when we announced the IPO, we did not set out to have a specific M&A agenda. We look at it as opportunities, but it's not something that our growth are dependent on. We continue to evaluate where we can see opportunities here, and we do have some prospects insights. Again, geographical expansion, we also continuously look at geographical expansion. We've opened up an office in Ghana, in Africa, and that is because we saw a big opportunity there. Again, just reiterating that we believe that the next superstar of tomorrow will come from some of these emerging markets, and we are seeing really big trends there. For us, if we can be there with the first steps on the ground and be able to help and facilitate that next superstar, that will mean a strong traffic growth, more industry footprint and so on, and that's obviously something that we're interested in as well. Moving into the business highlights from this quarter. What are some of the things that we've been focusing on? If we take, for example, the industry footprint, we've expanded and created some new agreements, most notably the Amazon Music agreement, but also here the Apple Music agreement. As a result of our continuous efforts on improving these agreements, we've of course seen a record high RPM increase of 38%. This was not just reiterating that this was not due to the Amazon agreement that was signed later here in Q2, but it's just continuous effort on improving the optimization here. If you look at then the scalability, it's also a great achievement for us in terms of being able to sign more partners that can drive more traffic, both in the publisher and social media space. We've focused a lot on increasing the commercial, the contractual, and also the product, process in here, so that the time to market for us starting a conversation with a partner to actually being live with a partner has decreased significantly. That is expected to have a positive impact on traffic in particular. Also something that has contributed to our strong traffic growth here in Q1. This is a trend that we expect to continue. We've also seen strong organization development. We've hired a lot of top talent, and what we're focusing on right now is maturing the organization, streamlining, and optimizing towards the highest commercial output, obviously. We also finalized the smartURL integration. We acquired one of our key competitors back in November, and we now finalized the integration with smartURL. Final expectation is expected to have been completed somewhere here in Q2, but it's great achievement. We've learned a lot from this. This was also our first acquisition, and I'm quite proud of the team and the organization for making this achievement. That was it for me in terms of the highlights. I will hand it over to Tobias to comment more on the actual financial performance. Sure. Here you go, Tobias. Thank you. Generally, we saw a strong performance across the business in Linkfire this quarter. Something that we're extremely proud of, showing a record high level of both consumer connections, RPM, and revenue in general. Something that we strive to do every month and every quarter, and we are proud to see it in effect. Consumer connections increased to the record high level of almost half a billion, so 481 million this quarter. It's a 36% increase in consumer connections, and it's mainly driven by the growth. The growth is mainly driven by the positive development in partner traffic, as we cited in the last earnings call for Q4. RPM reached DKK 9.52, up from DKK 6.87 in the same quarter last year. That's a 38% growth and again, the highest RPM level that we've seen. This demonstrates our ability to monetize the traffic that we generate, and it's obviously a composition of a lot of components, so conversion rates, the geographical composition of the traffic, and also the channels. We don't expect RPM to be linear, and we have seen that in the past as well, but this is a testament to how our monetization abilities have improved. Revenue on a constant currency basis reached DKK 11.1 million, up from DKK 7.6 million in the same quarter last year. This is a 46% revenue growth on constant currency basis and 51% on the recorded revenue. Recorded revenue was positively impacted by the strong US dollar. The drivers for the revenue growth are mainly a strong and solid subscription revenue growth that consistently continues to deliver on a 20%-25%. This quarter, it was up 26% from the last quarter, from the same quarter last year, whereas commission revenue grew 88%. What fuels the commission revenue growth, which is the majority part of this, of course, is the strong Consumer connections and RPM. Just to reiterate, the Consumer connections are the clicks on our links, whereas the RPM represents the revenue per million, so our ability to monetize our traffic in groups of thousands. Gross profit increased by 44% to DKK 8 million this quarter, up from DKK 5.6 million in the same quarter last year, at a gross margin of 72%. This is consistent with previous quarters and a development that we are obviously monitoring. We believe that we are able to increase the gross margin by entering deals such as the Amazon deal that we entered into after the quarter closed. Because the dynamics of that is it doesn't cost us more to post the traffic, but adding monetization opportunities will lift our ability to make margins off of the revenue. Moving on to the next slide. On key financial metrics, we saw an EBITDA that was affected by the investments that we are doing into staff and building up an organization that is ready for the future, ready to scale. Obviously, we invest ahead of the time when we reap the benefits. We've seen and proven that we are able to return great results, and we expect that to happen from the investments that we've shown this quarter as well. We do expect that the costs, as we also called out the last quarter, that they are going to stabilize from Q2 onwards, so we will not see the same increases in costs that we have seen from this quarter over the last. Intangible assets reached DKK 84.7 million and are a collection of development projects that ensures that Linkfire continues to be relevant in the market, relevant to our customers, and able to drive growth. This is development projects that host our product innovation, and we'll continue to invest in that. This also includes the acquisition of smartURL, which accounts for DKK 20.7 million Danish krona and includes both the upfront payment, the share issue, and also part of the earn-out. Total equity amounted to DKK 79.8 million krona, up from DKK 1.2 million in the same quarter last year. Obviously, the capital raised in connection with the IPO last year is the biggest development factor here. Looking at the cash flow, it was negative by DKK 24.6 million this year, and obviously we are a very different organization from before we listed our company. What we set out to do in the IPO is to grow and to grow in our focuses, as Lars described earlier, growing the consumer connections, growing the RPM, and also retaining and growing our subscription business while we do it in a sustainable way. This quarter's cash flows was impacted by the EBITDA, as we talked about before. The investments that we're doing into staff, increasing our talent density, making sure we're having the right competencies, and also building our organization up so that we are able to generate commercial value from that. Some specific developments that also impacted the cash flow in Q1 is that we are negatively impacted by some regular seasonality, which basically just means that we had larger outgoing payments than incoming. We expect that to flip in the coming quarters. Also one element that impacted the cash flow was the debt repayment that was extraordinary in Q1 and was concluded. This sets us up for decreasing our financial expenses, so better spend of cash. This should long term also make sure that we have more cash to fund our operations. Moving into the outlook. All of this of course sets the basis for performing on our guidance. We have financial targets of 50%-70% organic growth on the top line and a gross margin of approximately 80%. These targets are for the midterm, and they were communicated in connection with the IPO. We remain confident in the targets, and we are performing according to them. In connection with our annual report, we also published a guidance for 2022, and the figures in Q1 support that guidance. Moving into the Q&A? Yeah. I think that concludes our presentation. Now we're gonna move into the Q&A, and we're gonna see if there is any questions. I can see- If I can join Laura. Yes. Mm-hmm. We can squeeze together a little bit, yeah? Yes. Yes, we do fit. Yeah. All right. I think we will take the questions from the lines first. Moderator for you, do we have anyone on the lines having questions? Thank you. If you wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. There will be a brief pause while questions are being registered. There are no questions at this time. I hand over to you, speakers. All right. Thank you. I think we have some questions in the chat. Do you wanna take them, guys? Yeah. We have one question in the chat. Well, there's actually several questions in the chat. There's one question here. Several questions basically talking about synergies between costs and saving potentials, hiring, staffing, and positive EBITDA. Obviously I'll let Tobias comment. Yeah on the positive. I can say from a strategic point of view, we want to grow the business. To do that, we need the sharpest minds and top talent, and that's what we've been focusing on. We also have an agenda to break even for the year 2023. We do see harmony in those things, and we do that in a very controlled manner. We do need to grow the business as well, and I can let you comment on the actual numbers. Yeah. Sure. Yeah, 'cause as I commented on in my walkthrough as well, the staff cost or the cost in general increased this quarter over the last. That's of course a direct effect of us focusing on investing into the growth of the company. We always evaluate the investments that we do and the return on them and also building a professional organization that is geared to grow. What we've seen is that the synergies that we are seeing is that we are able to, by growing our consumer connections, we increase our leverage in the market. That allows us to close new deals such as the one that we did with Amazon for after the quarter. Some of those synergies are made because we are able to increase our footprint, so the industry footprint that we're focusing so much on. That's important for us to be able to grow that, but it doesn't follow the investment and the cost, of course, 1 to 1. We've seen an increase in cost now, and we expect to see the derived value. Just to comment on the cost increase from Q4 over Q1 or Q1 over Q4, sorry. As I mentioned before, we will not see the same increases. We expect to keep our cost levels steady, if not decrease. The decrease comes from the fact that after the IPO, we've had consultancy costs that we've taken in-house by some hires, for example. It comes from the efficiency that we're doing in our operations, which is exactly directed towards these elements. For example, reducing consultancy costs. We will improve on the EBITDA over time, but we are definitely confident about our investments, and we measure the return consistently. Yeah. I can see some of the comments are mainly in relation to this. Cost to revenue ratio and so forth. I think I can just reiterate on that that we will see that improving greatly. We focused a lot on hiring key talent. That is the talent that we are now seeing performing as well. These are some of the early results that we are seeing. I would say that everything is going really after as planned probably is the right English word of saying it as well. Yeah. A lot of incoming questions. Really cool. Maybe I'll scroll a little bit. Competitive situation. I mean, we have right now two products. We obviously have our marketing platform, and we have our discovery network. The discovery network is what we classify as all the publishers and social media application that use our technology. So on the marketing platform, we are the market leader within music as well, and we continue to double down on growing and retaining that position as well. That obviously means keep you know delivering awesome products and services to that. In terms of Discovery Network, I mean, here we've really only seen the tip of the iceberg in terms of how many partners we can move in here. Obviously, we are not the only player in town delivering leads to and sales to streaming services. There is a big opportunity here for us to grow our share of that pie significantly there. We don't have any named competitors there. For us, it's basically just to grow that opportunity as quickly as possible, and that's why we're investing fast in it as well. As I also mentioned, you know, there is increased competition within the streaming services, and that is something that we see to our advantage to also ourselves as consumers, but to everyone's advantage that there is increased competition within the streaming services. For us to be in a position where we drive value to the streaming services and can also negotiate a good agreements with these services, I think that's, you know, evidence of our strong position in the market as well. Yeah. There's also a few comments on smartURL and the integration. What I can just mention there, as we also mentioned in the slides, is we've completed the transaction, of course, and we've been working on the integration. As Lars mentioned, we expect to complete the integration in Q2. As we also wrote in the report, the effect of smartURL has thus been minimal in Q1, but we expect to see some of these effects in the coming quarters. What we can see is that the acquisition of smartURL has also added to our market position, so also the perception of Linkfire in the market, and that's something that helps us continue and elevate these dialogues with industry partners as well. Yeah. I think it would be fair to say that the acquisition of smartURL has cemented our position in the market and fast-tracked some of the conversations that we're having with some of our partners and some of the biggest streaming services. That's very evident, and I think Amazon is the first evidence hereof. There are some questions on what other partners are we working on. I mean, it's in our nature, it's what we do that we need to partner with all of these streaming services. We have good relationships with all of them. Some we have good agreements with as well, and that's something we're working on. Right now we are talking specifically to the big ones, the ones that will have the biggest impact on our business. Those are the ones that we will be working on and are working on as well. We're not gonna mention any names, but the bigger ones as well. We can assure that there are some questions here as well. If we're gonna make our shareholders happy, we can assure we are working day in and day out to achieve that. Yeah. I certainly hope that you are also happy being shareholders of Linkfire with this result in the Q1. How do you view the need for financing going forward? As we've mentioned several times, and obviously I understand the questions, when you see our OPEX and so forth, the cost level as well, but rest assured that we run this business in a very controlled manner. We need talent in order to grow. We don't have any plans of financing. However, if we look at opportunities and see opportunities, let's say a specific M&A opportunity that would require external financing, then we are totally not against it. We look at it as an opportunity, but the plan that we have now does not require additional financing. Yeah. Just to be clear, we do not expect to raise further equity to. Yes to finance our goals now. That's what I want to say. Exactly. Any other questions? Maybe we'll take one last question. I think we answered most of these questions. Yeah. Do you have anything else, Laura, coming in from the pre-? Not really. Platform. I think we have everybody who I thought would be dialing in is actually in the chat. Moderator, if you have somebody for us, let us know. We can see that most are in the chat here, just to check. We don't have any further questions at this time. Super. I hand over to Lars and Tobias. Thank you very much. For any closing remarks. Okay. Maybe rounding off with, I don't know if we were clear on that one. How do you see Amazon adding as an affiliate partner affecting the RPM going forward? I think that's maybe just one statement that we can make here. What we see from these affiliate agreements is that we have traffic, and we send traffic to most of these streaming services already. Well, all of them actually. Entering into partnerships with these streaming services that we do not already have a partnership with increases our ability to monetize traffic. We do expect that this will have a positive effect to the RPM. That's what we need to work on with the integration, of course, with the Amazon agreement and hopefully with more to come. Yeah. I can say it in other words. We will continue improving the RPM. We see in some regions around the world where the ceiling is much higher than our average RPM. Closing better and more of these deals will improve the RPM. We expect this trend to continue. I don't know if it will be as linear as it will be now, because if we have more traffic in a specific region and so on, that can skew it a little bit. In general, it'll follow a very positive trend line. The more we improve these deals, the more we make new deals, the higher the RPM will go. Amazon will contribute very positively. Right now, we're sticking to our guidance. If we see that it's going to contribute more positively, we would obviously announce that. Right now, it's according to plan, and we're very happy with the improved relationship that we have with Amazon right now. Yeah. Definitely. I think we're gonna round it up. First of all, thanks everyone for tuning in, and let me just close by saying that I am very proud of this start to the new year of Q1. We had an amazing start of the year. We delivered on the guidance, and we've seen very strong growth on our key strategic growth areas as well. I think that is something that is very notable, in particular in these uncertain times as well. Just finishing with that, thanks a lot for tuning in. We'll see you again in August. We are ready for it. Definitely. Yeah. Cool. Thanks, everyone. Have a good summer. Have a good summer.