QWAMPLIFY – QWAMPLIFY – Gross Margin and Q4 and Annual 2022 Revenue – 12/13/2022 – 6:25 pm

PRESS RELEASE

2022 TURNOVER: +0.4% to €31.1m

2022 GROSS MARGIN: -4.5% to €20m

2ND HALF 2022 OPERATING RESULT TARGET (REX) REAFFIRMED AT MINIMUM 10% OF SALES & 15% OF MB

Levallois-Perret, France, December 13, 2022, Qwamplify (ISIN: FR0010889386 – Mnemonic: ALQWA), a major French player in digital and data marketing solutions, today announced its turnover and gross margin, unaudited, for 4^th quarter 2022 (July-September 2022) and the year 2022 (October 2021 – September 2022):

Turnover and Gross Margin for the 4th quarter (July – September 2022)

* PC: Comparable coverage

In the 4th quarter of 2022, the consolidated turnover increased by 6.8% and reached €7.3 million. Gross Margin decreased by 11.8% to €4.2 million.

In this quarter, digital activities experienced a slowdown in growth mainly explained by:

• the decline in e-mailing activities due to Internet Service Provider (ISP) distribution restrictions combined with the decline in co-registration activities;
• a decrease in the volume of some digital campaigns due to the inflationary context;
• an unfavorable mix of services sold weighted to the Gross Margin rate;
• and finally, the increase in purchasing costs that have not yet been passed on to selling prices.

Annual Turnover and Gross Margin (October 2021 – September 2022)

Annual revenue rose slightly by 0.4% to €31.1m (-0.3% in CS) while annual gross margin stood at €20m, down 4.5% (-5.2% to €19.9 million on a like-for-like basis ).

The decrease in annual Gross Margin was mainly due to the decrease in historical activities (Shopper) in France (which experienced a strong rebound in 2021) and in the Nordic countries, as well as an unfavorable mix of service sold.

Profitability objective for the financial year and outlook for 2023 confirmed.

The Group confirms its operating profit target for the second half of 2022 at a minimum of 10% of turnover (and a minimum of 15% of gross margin), despite the increase in external costs and wages.

For the 2023 financial year, the Group still expects pressure on its digital activities in the first half of the year, with good performance in consumer activities, but remains confident in its ability to return to growth in the second half of 2023.

In addition, the Group has initiated a commercial action to increase prices for the 2023 financial year which should have an impact on margins from the 2nd quarter of 2023 (January-March).

Finally, Qwamplify continues to make progress in structuring its human capital to generate future growth. After the arrival of its Managing Director Shopper France, Morgane Busselez, at the end of 2021, of its Managing Director Media, Jérémy Bréot, at the beginning of the summer, after its Media Sales Director, Géraldine Banon, in September, the Group announced the arrival of a Consulting General Manager in January 2023 to support 360° sales.

Cédric Reny, CEO and Foundercomment: “We were able to consolidate activity in 2022 after a strong rebound in 2021, allowing us to finish the year with slight organic growth and very good commercial momentum in the 3rd and 4th quarters, in despite tensions in margins and in Shopper activity. . The Group is in the process of raising its sales prices to catch up with the increase in external costs and wages. The formation of the 360° team, the recruitment of senior managers, as well as the integration of experts from the Bespoke agency, who will join the Levallois headquarters in December, will consolidate the positioning of Qwamplify in the main account, whose initial gains have already been earned. observed in 2022. An acceleration is expected in 2023, supported by the repositioning of the Qwamplify brand (new brand platform and increased investment in marketing and sales).

NEXT RELEASE : 2022 annual results and CA and MB 1st quarter 2023: January 31, 2023.

About Qwamplify

Qwamplify is a European marketing group of digital and data services for brands, distributors and e-merchants to build their sales. The Group offers digital solutions (emailing, SEA and SMA, SEO, Display, co-registration, Brand Content, Social Media, Influence and analytics) and B2B and B2C promotional solutions. Since 1997, Qwamplify has gained a solid reputation with more than 800 advertisers, including: TCL, Delonghi, Kärcher, Manitou, Decathlon, Bureau Vallée, Carrefour, Etam, Air Caraïbes, Michelin or Arla Food.

Qualified as an “Innovative Company” by Bpifrance, the Group, headquartered in Levallois-Perret, listed on Euronext Growth and included in the PEA-PME 150 index, is also located in Aix-en-Provence, Lille, Marseille , Nice and Bordeaux in France as well as Finland, Sweden and Norway. For its last financial year that ended at the end of September 2022, it achieved a gross margin of €19.9 million and a profit of €31.1 million (+0.4%).

CONTACTS: investors@qwamplify.com