- Linkfire delivered the best quarter in its history, beating previous best quarter 3Q22.
- Revenues grew by 72%. The growth was driven also by the new partnerships with Apple Music and Amazon Music
- Gross margin of 79% – the highest ever
- The CEO of Band Lab became 4th largest shareholder in Linkfire. Band Lab is the largest a online Cloud Digital Audio Workstation tool for creating music with over 60 million users, including professionals like Dr. Dre or Jay-Z.
- Profitability is the main goal for 2023. With the current cost base, the revenues need to grow only by 22% to reach profitability. Last quarter growth exceeded 70%.
- After partnering with Amazon Music and Apple Music, new majors partnerships should be announced in 2023.
- Linkfire dominates smart links for music industry. We expect the company will enter into podcasts in Q1/Q2 to dominate the podcasts as well.
- We have bought material stake in Linkfire in the last few months and we should be among the largest investors now.
We think the biggest opportunity for this year would be to look for solid companies, whose share price was beaten up severely last year. Linkfire is the best example of such investment case. Solid company, dominating its industry, no competition, 70% growth…
Linkfire is 90% down from its post IPO peak
Linkfire market capitalization is down from 1.4 bln SEK to 130 million SEK. The drop was mainly caused by market dislike for growth companies + Linkfire refinancing in worst possible time last year. Last year biggest mkt cap looser this year winner may fit well for LInkfire.
Link to investor presentation:
Link to investor Q4 webcasts:
https://app.livestorm.co/linkfire/linkfire-quarterly-earnings-call-q4-2022?type=light
Disclosure:
The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.
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