Paris, January 11, 2023 – The Board of Directors of Deezer (Euronext Paris: DEEZR) met today to review the group’s estimated full-year 2022 results[1] and validate the full-year 2023 budget.
With regard to 2022, based on estimated figures, Deezer expects to achieve revenue of approximately €450 million, up c.13% compared to 2021[2], a strong acceleration of revenue growth compared to +5.6% in 2021. The group’s performance was particularly strong in France, as reflected by a solid B2C subscriber growth of over 8% as of December 31, 2022 compared to December 31, 2021 (with the global B2C subscriber count remaining flat year-over-year).
Further to delivering double-digit revenue growth, Deezer was able to significantly improve its estimated adjusted EBITDA loss, expected to be in the range of €57-60 million in 2022 (compared to an adjusted EBITDA loss of €65 million in 2021). The group has strongly improved its operating performance, which allowed it to make substantial incremental spending, of approximately €7 million, in product development and innovation, notably for the development of the Zen application launched in December 2022.
Deezer will release its full-year 2022 results on February 28, 2023.
Outlook
With respect to 2023, in order to mitigate execution risks in the current market conditions and secure its path to profitability by 2025, Deezer has decided to prioritize its profitability, while still delivering double-digit revenue growth compared to 2022.
In 2023, the group will continue to execute on its four strategic priorities, seeking to further optimize its B2C business with a clear focus on improving unit economics, and continuing to expand its B2B business in its targeted geographies.
Consequently, Deezer expects for 2023:
- Double-digit revenue growth, in excess of 10% compared to 2022[3], mainly driven by the further expansion of the B2B segment;
- A further significant reduction in adjusted EBITDA loss compared to 2022.
Given its focus on profitable growth, Deezer confirms it remains on a path to generate a positive cash flow[4] in 2024 and to achieve a positive adjusted EBITDA in 2025, while delivering double-digit annual revenue growth over the period[5].
[1] Unaudited.
[2] This compares to a guidance of revenue of approximately €455 million for 2022, representing a growth of approximately 14% compared to 2021.
[3] This compares to the previous objective of revenue of approximately €560 million for 2023, representing a growth of approximately 24% compared to 2022.
[4] Cash flow pre-funding.
[5] In this context, and in a new challenging macroeconomic environment, the previous ambition to generate revenue of €1 billion and a cash flow pre-funding superior to €50 million in 2025 might be delayed.
Adjusted EBITDA definition
Adjusted EBITDA is defined as operating income / (loss) adjusted for non-recurring expenses, mostly related to license agreements and onerous contracts depreciation, and certain non-cash items such as depreciation and amortization, share-based expenses and other non-recurring expenses.
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FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, which shall not be considered as historical facts. These statements include projections and estimates, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, future services, product development and potential, or future performance.
In some cases, you can identify forward-looking statements by words such as “could,” “should,” “may,” “expects,” “anticipates,” “believes,” “intends,” “estimates,” “aims,” “targets,” or similar words. Although the management of Deezer believes that these forward-looking statements are reasonably made, investors should be aware that these forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond Deezer’s control that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by these forward-looking statements. In particular, the expectations of Deezer could be affected by, among other things, risks and uncertainties developed or identified in any public documents filed by Deezer with the French financial market authority (the Autorité des marchés financiers – the “AMF”), included those listed in the prospectus approved by the AMF on June 15, 2022 under number 22-216. Deezer undertakes no obligation to publicly update any forward-looking information or statements, subject however to applicable regulations, in particular articles 223-1 et seq. of the AMF General Regulation.
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ABOUT DEEZER
Deezer is one of the largest independent music streaming platforms in the world, with more than 90 million tracks available in 180 countries, providing access to lossless HiFi audio, innovative recommendation technology and industry defining features. As the home of music, Deezer brings artists and fans together on a scalable and global platform, to unlock the full potential of music through technology. Founded in 2007 in Paris, Deezer is now a global company with a team of over 600 people based in France, Germany, UK, Brazil and the US, all brought together by their passion for music, technology and innovation. Deezer is listed on the professional segment of the Euronext Paris regulated market (Ticker: DEEZR; ISIN: FR001400AYG6) and is also part of the newly created Euronext Tech Leaders segment, dedicated to European high-growth tech companies, and its associated index.
CONTACTS
| Investor Relations | ||
| Laurent Sfaxi | +33 6 72 06 23 05 | investors@deezer.com |
| Media | ||
| Jesper Wendel | +33 6 79 35 37 17 | jwendel@deezer.com |
