A warm Welcome to Copenhagen and Linkfire's Q2 webcast. My name is Laura Lindholm, and I'm the Head of IR and Corporate Communications. Before I give the floor to our CFO and CEO, I will run you through some practicalities. All report material is available through one bio link and also on our investor website. Questions for the Q&A at the end of the webcast can already now be posted in the chat function. Alternatively, you can also send them to investors@linkfire.com, and we will raise them in the Q&A. Before I hand over, I would also like you to be reminded of the disclaimer, which you can see here on the slide. Now over to Lars and Tobias. The floor is yours. Thanks, Laura. Great. Thank you, Laura. Let's change the slide. Hi, everyone, and welcome. Today, we are going to go through our Q2 report. We will present the report and the results. A report or a quarter that showed us laying a strong foundation for our continued growth, and also a quarter that showed us maintaining our confidence in our revenue forecast while adjusting our EBITDA guidance due to changed market conditions. We'll start off with a business recap. We'll go into business highlights, financial performance, and then outlook, and then of course, end with a Q&A. Before we get started with the business recap, let's quickly address the key points of the report. Here is a summary of how we see it. First of all, Linkfire continues to be on a growth mission. We need talent, and we need initiatives for to obtain this growth. Some talent and some initiatives have longer return profiles. Given the current market conditions, we are now focusing on shorter-term value-generating initiatives. We underestimated some market signals and performance in Q1, and as a response, we streamlined here in Q2. We're now adjusting our EBITDA guidance as a result. I think it's very important also to note that we remain confident in our revenue forecast and in that guidance, both for the year, but also in the midterm. We continue to see strong underlying growth metrics. We saw a quarter now where there was a delay, or there has been a delay in revenue, something that we're seeing picking up now fast as well. Those are some of the things that we will address as well. We remain confident in our revenue forecasts. We're also evaluating financing options. We've been talking about that in some of the previous calls as well, so that we can continue growing and then continue our profitability journey. I just think that's very important. That's how we see things in the business. Before I move forward, just for all the new ones there, what is Linkfire? If you're new to us, we're a business that operate in the entertainment, marketing, promotion space. We optimize impact drive streams, increase ticket sales, and recommend audio content to billions of fans and listeners on a global scale. We work with all the major labels, major artists, a growing number of smaller artists as well, into hundreds of thousands. We work with big social media platform, ticketing, streaming services as well. Our core value proposition is that we are building this global recommendation network that generates a lot of traffic for different audio services, streaming services as well. We help consumers or fans quickly make a decision and navigate into the point of consumption or further discovery as well. That is our core value proposition. Our business model is that we charge a fee to use some of these services that enable that value proposition. We also earn revenue whenever we drive some sort of value activity at the end of the destination where the consumer goes. That can typically be a download, a stream, a purchase, some sort of value transaction for introducing those services. That is the core of Linkfire. We help fans, artists, creators, and streaming services create value and find the best products across many different places. We make money when we do so, when we provide that service. We continue to be optimistic in regards to the market, and we see three major market developments. There is a lot of market developments that we're optimistic about, but these are the three main ones. First of all, we see an increased competition for streaming consumers or streaming subscribers. We will see the current market shares right now change a lot. Some will move up and down in terms of market share as well. We clearly see signs of increased competition. That is something that is interesting for us because more competitions mean more fight for subscribers, and more fight for subscribers means increased fees to companies like us that help them drive growth as well. What we're also seeing is that music and entertainment continues to be a big part of our lives and hearts and so on. We actually seeing that music and entertainment consumption are now transcending traditional streaming services. We see us and our kids and the next generation interacting with music, not just in streaming services, but also across new platform, games, social media, where they're dancing and so forth. Music will continue and entertainment will continue to grow into new realms. Yeah, much like we've seen in the past 10 years, where it's gone from downloads to streaming. We continue to be optimistic about our core value proposition, which is to help consumers and fans navigate very quickly into where they can then consume the product or enjoy the product further, whether it's the song or the T-shirt or the ticket. There's a very key like our attention span as human continues to go down. There's simply so much content, so much things that we want to enjoy, whether it's short form video and so on. There is a growing need for someone like Linkfire to help us as consumers navigate very, very fastly or quickly and seamlessly into the point of consumption. If we zoom in on the subscriber opportunity alone, we're seeing that the subscriber market for music streaming is set to increase with a further 600 million users until 2030 subscribers. That represents an annual opportunity for Linkfire of $2.3 billion. We also expect that around 150 million of those will switch services every year, which represents a further $4.5 billion opportunity every year as well. Just saying that it's quite a big opportunity on the subscriber growth for music streaming services alone. We also of course cover broader entertainment, but also ticketing, merch and so forth. What are some of the strategic growth areas or the focuses that we have and some of the things that we, you know, ask you to pay special attention to in our reports as well? First of all is the increase in traffic. Like traffic is the key for our growth right now. We need to grow our consumer connections. That's what we call traffic. The amount of consumers or fans that engage with our links, that is a key metric. The other one is our RPM. We need to keep monetizing that traffic. That means optimizing product, making more and better deals with different streaming, ticketing, merch services. Where we drive the consumers to, we need to have improved deals in that end of the funnel as well. Those are two core and key metrics to our continuous growth. We of course need to keep creating value for our subscription customers, so artists and labels, the ones that are creating many of these links and generating a lot of this traffic. We need to make sure that we have a strong offering for them as well. We of course are running a streamlined and more focused organization now. We do expect to break even here in 2023. We will perform on our growth initiatives with an even more streamlined and more focused organization now. Some of the opportunities that we've been talking about on some of the previous investor calls are a bit more long-term growth opportunities. They're not the ones that we are necessarily focusing more on now. Now we're focusing on the short term opportunities right now, rather than looking too much long term. We have vertical expansion within audio within entertainment. You can expect to see an effort and investment into the audio space already in this year. This is something that we've been addressing ongoingly, and it's something that we are working very hard to make a move in there. It's simply really a hot topic these days. There's a lot of opportunity for us there, and I would probably even categorize that not as a long term necessarily, but there is actually a short term impact as well. It's something that we will be investing in. Otherwise you can see obviously that we will be seeing consumers transcending more and engaging more across the metaverse in games and so on. This is more of a long term endeavor. It's not a switch that we'll see today, but the next generation of consumers will interact more across these social media gaming platforms as well. We have a really strong offering there as well, and a product that fits. We are again looking at M&A activities. We don't have an active M&A agenda. We're mainly just having a look to see what is there of opportunities and if there is an opportunity, of course, we will evaluate it. It's not something that our growth is dependent on. Geographical expansion. We continue to be excited about the opportunities in particular in Africa, Southeast Asia and Latin America. What we did earlier this year is we opened up an office in Africa simply because it is a big opportunity. We saw actually really strong numbers for there. We also saw that it was a longer term investment for us. This is something that we pulled back on now to basically say we're going to focus on our core. What we know will generate short term value, and we're now supporting our Africa activities from our European offices. Doesn't mean that we are less excited about the opportunity, it's just it will take longer time. It's definitely something that we'll have a look at later down the line again, to see how we can fast-track that. Tobias, I'm going to hand it over to you to run through some of the numbers and the business highlights. I think you can talk about the business highlights first. Yeah. I'll take the financial highlights afterwards. Sure. Sure. All right. One of the really key highlights in Q2 here was the new agreement with Amazon. Amazon is obviously one of the biggest companies in the world. It was very key for us to make this agreement with one of these companies. We are targeting to make similar agreements with similar-sized companies of the same size that are in the music and entertainment space. For us to ink this deal and to progress with Amazon just cements our plan and our strategy, and it'll have a significant contribution to our top line. Something that was a bit delayed here in Q2, but something that we've already picked up quite fast and we're seeing really strong growth on those metrics and that partnership already here in Q3. We obviously been focusing a lot on delivering a strong product that can scale. Our traffic has grown quite significantly this year, and we expect the traffic to continue to grow our consumer connections. That obviously means then we have to continuously develop the product so it can scale as the business scales. We continue to attract amazing talent. We have attracted a lot of amazing talent. It's a tough market to attract talent. There's a lot of interest in the talented people right now. We keep attracting the right talent and focusing on the organization, which, you know, is very key to our growth as well. We need talent, we need initiatives, and we need the right product in order to continue the growth. We finished the smartURL integration. We acquired smartURL back in, I believe it was in November in 2021, which saw us consolidating the market. smartURL was one of our competitors. We have seen a really, really good monetization performance on the traffic and the consumer connections, which is very positive. We have not seen yet the expected impact on the traffic. It's a little bit under what we estimated. We're not concluding anything yet. We'll conclude that at the end of the year. It's also very important to note that smartURL, the acquisition of smartURL was not just a direct effect that we could see on both revenue and traffic, but also the indirect effect where it led us to, for example, getting closer to Amazon and so forth. It has helped a lot with the indirect footprint into the industry as well. Now I'll be happy to take the financial performance. Great. Thank you. Yeah. Moving into the key performance metrics for Q2. Looking at the consumer connections and just reiterating that consumer connections is the number of times consumers engage with our links and inventory in the market, saw an increase of 30% to 538 million for the quarter. Continues to be positively impacted by the partner traffic, which we also saw in Q1. The RPM is dependent on many factors and thus is not linear, as we also continuously state. However, this quarter was temporarily negatively affected by a shift in one of our partner agreements, so specifically from the existing agreement with Amazon to the new one. That saw a negative temporary impact on Q2, which we've seen being restored entering Q3 and now positively contributing to our growth. That led to the RPM ending at 5.7 for the quarter, a 1% increase that we of course expect to develop more positively in the coming quarters. The revenue is, needless to say, also impacted by this temporary shift in the transition of the deal, the agreement. This saw a constant currency basis revenue growth of 20%, ending at DKK 9.5 million in revenue, which mainly derived from subscription revenue growth of 14%, and then also the 32% growth in commission revenue. Our recorded revenue ended up at DKK 10 million, which is a 31% growth over last year. Gross profit came in at DKK 6.6 million. It's also impacted by the temporary effect of the transition of the partnership deal, and that was a 14% growth to last year and a gross margin of 69%. Adjusting for the effects of the Amazon deal, we saw similar growth rates and gross margin performance as the previous quarters. Moving on to the key financial highlights. Talking about the EBITDA. The EBITDA is also affected by the temporary negative revenue effect and the cost base entering Q2. In Q4, we ramped up and invested a lot into our talent base, and that increased our cost base in Q1, and obviously that continued into Q2. We are focusing on increasing that talent base consistently, assuring key competencies because it's a basis for our growth in order to be the growth case that we are and hitting those good growth rates that we're seeing. We believe, though, that we underestimated the effects of the market and performance signals that we saw in Q1, and thus, as a response, we have decided to streamline the organization, which as a result have a negative impact on this year's earnings, but sees us reducing our cost base with 10%-15% effective from H2. We've included all costs related to the streamline in H1, in Q2, and thus you'll see clean business performance in H2. The intangible assets amounted to DKK 89.5 million. We are continuing to invest in our product development and R&D since that's as well as talent base and the key competencies, a key driver for our growth. It's important for us to stay relevant now and in the future, and that's what we're securing with our consistent product development. Included in the intangible assets is also the acquisition of smartURL, amounting to DKK 20.7 million. As Lars mentioned, we are going to evaluate this investment and conclude on this year by end of the year. Our equity position continues to be solid at DKK 62 million. Lastly, our cash flow ended at a negative or a decrease of DKK 17.2 million, which is a 30% improvement from Q1, positively impacted by the working capital development. We continue to invest in our product development, and we do expect to see H1 peaking in terms of capital expenditures related to R&D. Furthermore, going forward, we are also expecting improved EBITDA performance from the lower cost base compared to H1. We are also seeing H2 historically being a stronger quarter and contributing more to the top line. Moving into the H1 summary. For the key performance metrics in H1, we saw consumer connections ending just above 1 billion, which is a 33% increase over last year. Again, this is positively impacted by a continued effort into raising our partner traffic. The RPM saw the highest RPM ever in Q1, and we would have continued that, trend if it had not been for this temporary effect of the shift in partnership in Q2. That led to a total RPM growth of 21%. Revenue amounted to DKK 20.8 million, which is a constant currency basis growth of 33%, led by a subscription revenue growth of 21% and commission revenue growing by 61%. Our recorded revenue in our income statement ended at DKK 21.3 million, a 41% growth. Gross profit ended at DKK 14.6 million. This sees a constant currency basis growth of 29%, ending at a gross margin of 70%. Looking at the gross margin impact that the temporary effect in Q2 had, we would have seen a similar gross margin adjusted for this effect for the first half year, so 72%, as we've seen in the previous quarters. We expect to be able to lift this gross margin going forward by entering new affiliate agreements, by increasing our monetization abilities and increasing our traffic. Moving on to the update on cash position and financing. On the cash position, I want to shoehorn in a brief update here to conclude on both the cash position and also, inform about the financing plans. Our cash position is ending the quarter lower than the decrease we saw during the quarter. All in all, we expect positive development in H2 of this year from working capital development, expected revenue performance as we do see H2 contributing more strongly to the year than H1, and obviously also the effects of the lower cost base. I want to restate as well that we are a growth company. We invest in growth, and we have done that up to this point, and we continue to do so. We believe we underestimated the effects of the signals that we saw in Q1, which led us to this responsive streamlining the organization. We have included all costs related to the streamlining in Q2, so you should expect to see clean performance in H2, so in the second half year of this year. We expect to reduce the OpEx. We expect the effect to reduce the OpEx by 10%-15%. On the financing side, we are currently operating on a combination of positive capital effects, cash and new credit facility with our bank. We are securing the necessary finances to ensure operations towards profitability and to resume our growth journey. Necessary financing is in the range of DKK 40 million-DKK 50 million, and we're currently working on and assessing the options that we have. As we've previously communicated, we will raise debt to resume our growth into the profitability that we expect next year. We are now opening up the option as well to look at equity financing, as it's important for us to keep all options open to ensure the best terms for the company, the employees, and the shareholders. We as in the management remain confident in our ability to attract the necessary financing as part of our business plan towards profitability. Moving into the outlook and guidance. We remain confident in our revenue guidance, both for the year and for the midterm, and sustain that and maintain it. We've adjusted our EBITDA guidance as a result of us cutting down on the longer term value-generating initiatives, while focusing on the shorter term value-driving initiatives. The EBITDA guidance adjustment is mainly a direct result of the cost related to this streamlining. As stated, we are investing into growth initiatives and have done that with longer return profiles than the market conditions allow. We decided to do this as a response to that, and the result sits on our EBITDA guidance adjustment. Conversely, though, we are also seeing that the initiatives that we are focusing on driving short-term value generation, they are actually doing it faster in many cases than we expect, which leads us to be confident in our revenue guidance both this year and in the midterm. Yeah. I just want to add a note to that. Yes. Because that's very important too. Sorry to interrupt you. The initiatives that we are focusing on now are showing faster than expected return on that investment. That means that of course we need to evaluate what is long term and what is short term. Yeah. With the staff reductions or the OpEx reductions that we've done now, we can continue to invest in the short term initiatives. Yes That are generating the faster return. There's not a compromise there. We're simply just focusing on the short-term value generation, and that is why we are confident in our targets and guidance for the year, but also midterm as well. Yes. All of this together is contributing positively to us breaking even next year as well. Correct. Beautiful. Q&A. Yeah. Thank you, Tobias. We can see that there are a few questions. A lot of the questions is in regarding to the Amazon deal. Yeah That partnership. One question is, if the revenue growth was negatively impacted by temporary effects related to the transition in the Amazon partnership, would it then be fair to assume the growth will accelerate in Q3 and Q4 compared with Q2? Yes, that is fair to assume. What we mean by saying that it's been temporarily delayed, we switched from one type of agreement to another type of agreement. We anticipated that there would be an overlap, but the overlap has been a little bit larger than what we anticipated. We anticipated that it wouldn't be noticeable, but now it is noticeable. What we are then seeing now is that the new agreement has picked up very, very fast, and we of course expect to see the results. We are seeing the results already, and it's very interesting. That's also what is making us be very confident in our guidance as well, because Amazon do contribute significantly to our revenue. Yeah, exactly. As we mentioned, we can see that these levels that we saw from the previous deal with Amazon have been restored in Q3, and we can now see that it's contributing positively to the growth. There is like when will you see the full effects of these Amazon- Yes ..partnerships? We're already seeing it now. We expect to see it in the coming quarters as well. The full effect, it's a partnership that will grow as our traffic grows. It's the full effect will be ongoing, so to say. The more traffic, the more consumer connections we have, the bigger the revenue and opportunity is, here. There's not a hard stop on that full effect. I think it's also important to say that we are seeing a temporary effect here in Q2, but as Lars mentioned here, this is a long-term deal for us. We are looking at it with the big glasses on, and we believe this is a better deal for the company, and we are seeing the effects of that already. We definitely believe that we are able to contribute positively to our growth in H2 with this deal, with all of the deals that we make, and also in the long term. Yeah. I mean, very concretely, what happened was it took us one and a half months longer to execute on the new partnership than the one that we had. That's the delay. Yeah. Then there's a question saying, "Can you say anything regarding the gross margin going forward? It looks. Is it likely that it will be above 70% in the remaining quarters?" As I mentioned during the presentation, when we adjust for the effects of the temporary negative effect of this deal, we saw similar gross margin as we have presented in the previous quarter, so at 72%. We also believe that we are able to lift this gross margin going forward when we are entering new partnerships to lift our monetization abilities. We still remain confident in both our midterm targets and the guidance for this year based on that. There's a question saying, "How much money is back in the account, in the bank account?" I think it's fair to say that right now we are evaluating all of our options, and financing always has been and will continue to be part of our business model as long as we're not profitable. We are aiming to be profitable next year, and in order to resume our growth journey towards that, we are looking at the financing options. We remain confident that we are able to conclude on the financing before this becomes topical. We expect to update the market also in this current quarter. It also says you're referring to Q1 negative effects that you have underestimated and therefore adjusted your cost base? Yes. Exactly. The negative effects that we've seen is an effect of a combination of the market conditions that we've seen and also the long-term initiatives that we've launched. For example, the Ghana office that Lars talked about. Some of these long-term contributing initiatives we have looked at and said, "Well, at this current market condition, we need to focus on the initiatives that are generating shorter term value, and thus cutting off some of those long-term focuses." This does not change the fact that we believe in our long-term, mid-term, growth targets, because we can see that the initiatives we're focusing on now yields faster and better results than we actually expected. Yeah. Yeah. There's a question about market conditions. Well, when we're talking about market conditions, we're talking about inflation rates, we're talking about increasing interest rates, and also the price of growth, basically. When we are looking at the cost of our growth, we get a better and quicker profitability by focusing on the shorter term initiatives rather than the longer term initiatives. Yes. There's a question about what is expected from the burn in H2 2022 and in H1 2023. We can see that historically, H2 is a stronger quarter, stronger half year than H1. We believe that H2 will contribute more positively. We will see a positive tendency in our operational contribution to the cash, and also the effect of our streamlined organization will contribute positively to this. We do also believe to continue our positive impacts from the working capital contribution, so that we are able to get to a significantly reduced burn rate in the coming half years. Yes. Yeah. Seems like that's for now, that's it for now. Yeah. I don't know if there's any more questions. Again, we'll stay on for another 30 seconds to see if there's any new questions. Otherwise, again, as per usual, please feel free to send us an email on investors@linkfire.com. Yeah. Otherwise, we thank you for your interest in Linkfire. We are excited for our growth journey, our continuous growth journey. We will see some exciting quarters, and we will see some exciting partnerships ahead. There's another question. Why is H2 a stronger half than H1? Yes, I can just briefly talk to that. Historically, our monetization rates have been better in the second half year. Sometimes you're seeing the effects as you see in e-commerce as well, related to holidays such as Black Friday, Christmas, and so on as well. That's contributing to also our growth and our ability to monetize. As we have more partnerships and better deals, we do expect that to also be visible in H2. Yeah, I can add to that. Generally, we just see increase in traffic growth in particular in Q4 as well. Q3 is also usually quite strong. Of course, we enter this second half of the year with a strong deal with Amazon and with many other things in motion as well. That causes us to, of course, believe that we'll have a stronger H2. Historical and also the things that we have achieved this year already and the things that are incoming as well. Yeah. There's the last question coming in. What is the cash burn you expect? We expect to reduce our cash burn significantly over the next quarters, and we expect the DKK 40 million-DKK 50 million that we communicated to be sufficient to take us to break even as well. Yes. Well, thank you for your questions, your time. Yeah. Thank you. See you around.