Press release

Q3 2022 revenues: slower growth in the context of challenging market conditions

London, 19 October 2022 – Invibes Advertising, an advanced technology company specialising in digital advertising, publishes its revenues for the 3rd quarter of 2022 and for the first nine months of 2022.

Q3 revenue growth of +8%

Consolidated turnover for the 3rd quarter of 2022 amounted to €5.5m, an increase of +8% over the same period in 2021. For the first nine months of 2022, Invibes Advertising posts a cumulative increase in turnover of +35%, off of a high nine-month 2021 basis which had shown 3-digit growth.

Market conditions have been challenging, with a notably soft summer that has affected the entire sector. While September is usually a strong month, this year, September was impacted by the difficult economic context and rising inflation in several European countries. With growing concerns about consumer purchasing power, some advertisers decided to reduce their budget or direct it towards limited promotional campaigns. In particular, the French digital advertising market has been very slow in Q3 2022.

Focus on Excellence

After expanding its commercial presence in 8 additional countries over the last 18 months, Invibes Advertising’s management is focusing its efforts on core service to ensure that the Company delivers Excellence for its clients and achieves further growth.

Several elements point to the quality of Invibes Advertising’s offering:

• The number of clients of the Company has increased by 43% in the first nine months of 2022 vs the same period in 2021. Some large campaigns run last year by public bodies in the context of Covid are being replaced by several individual campaigns for other advertisers.
• The number of clients taking advantage of the Company’s capability to run cross-market campaigns has doubled between the first nine months of 2022 and the first nine months of 2021.
• Scale-up and start-up countries are increasingly contributing to the Group’s performance, confirming their strong potential, even though the important UK advertising market was severely affected by the death of Queen Elisabeth II at the beginning of September, with a recovery towards the end of the month.

If anything, the current challenges of the economic context act as additional incentive to further strengthen a fundamentally good business that will be able to grow as soon as market conditions improve. Already in 2020, the advertising market was severely affected by the Covid pandemic, and yet, Invibes Advertising was able to achieve 19% growth that year, followed by a doubling in revenues in 2021. Now again, the whole Company is fully mobilised towards delivering Excellence for its clients to gain market share and lay the ground for accelerated growth once the economic environment improves.

Heightened focus on cost control

Following a strong commercial push and an ambitious recruitment programme in the first half of 2022, Invibes Advertising now has teams in place across 18 offices in 15 countries, in line with the international expansion objectives announced in the Company’s development roadmap. This international footprint now provides Invibes Advertising with sufficient scale to execute its development plan, without needing to expand further in the medium-term.

Management’s focus is firmly set on improving the Company’s profitability by optimising the cost structure and increasing productivity.

Sound financial structure to finance strategic investments and fuel future development

Invibes Advertising raised €17m in a private placement in January 2022 to have the financial resources to fund its development. After substantial investments to achieve its planned international expansion, the Company’s priority is to improve its offer. Thanks to a strong balance sheet, Invibes Advertising is able to continue to invest in technology and operations in order to innovate, to further enrich its products range, and to ensure a high level of service to its clients.

That sustained level of investment is essential to enable Invibes Advertising to convert the current economic challenges into an opportunity to strengthen its position in the market. This will give the Company the capacity to fully benefit from the future market recovery. In the meantime, in light of the currently challenging market conditions, management is reviewing its announced 2024 target turnover.

Next publication: 2022 full-year revenues on 25 January 2023, after market close.

About Invibes Advertising

Invibes Advertising is an international technology company specializing in digital advertising innovation. Founded in 2011 by co-CEOs Kris Vlaemynck and Nicolas Pollet, Invibes Advertising has developed an integrated technology platform designed to strengthen the relationship between brands and consumers through in-feed ads.

At Invibes Advertising we believe in the power of connections.

• The power of connecting brands directly with consumers to enable more meaningful interactions.

• The power of connecting big data, innovative in-feed formats, wide reach and extensive intelligence services in a single, holistic platform to bring brands and consumers together seamlessly and efficiently.

• The power of connecting a unique pull of passionate, dynamic and knowledgeable in- feed specialists from across the globe to make up the extraordinary team that is Invibes Advertising.

In order to partner with some of the greatest brands in the world, like Amazon, Bacardi, Volkswagen, Dell, IKEA and Toyota, we rely on even greater people to share our innovations with the world. Along with our unwavering belief in technological potential, more fundamentally, we believe in the potential of our people. At Invibes Advertising we actively strive to maintain an energetic, open environment that fosters a culture of ideation, growth and #GoodVibes, that shines straight through to our clients.

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Invibes Advertising is listed on the Euronext Stock Exchange (Ticker: ALINV – ISIN: BE0974299316)

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Financial & Corporate Contact:

Audrey Mela, VP Investor Relations