First impressions Adverty, Q1 2023: Strong growth but below our expectations

Equity research Adverty

Today, Adverty published its interim report for Q1 2023. Below is a compilation of our first impressions of the outcome, including deviations from our estimates.

• Net sales increased by 138% in the quarter, amounting to SEK 4.5m. Our estimate was SEK 5,3m. The outcome was thus 17% below our expectations.
• The gross margin improved by to 34.0%. Our forecast was 40.3%. The gross profit of SEK 1.5 million was thus below our estimate of SEK 2.2 million.
• The EBITDA result improved to SEK minus 4.2m from minus SEK 4.9m in Q 2022. Our estimate was SEK minus 2.5m.
• Earnings per share amounted to SEK minus 0.18, whereas our estimate was SEK minus 0.10.

The report was below our expectations, and the share may initially be under pressure after the recent rise. The positive news flow has been plentiful ahead of the report, and the company believes that the business is developing in line with the target – to achieve total sales of SEK 50 million in 2023. We intend to provide an updated analysis of Adverty shortly. Read our latest research update here.

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