In terms of turnover by product type, affiliate marketing contributed almost entirely to this figure. The product increased by 49%, reaching RON16 million, amid a 62% increase in unique users within the platform. The influencer marketing product decreased by 20% in the first half of 2022 compared to the same period in 2021, reaching revenues of RON66 thousand due to the company’s decision to no longer focus on this product line.
2Performant Network’s operating income increased by 56% in the first half of 2022 compared to the same period in 2021, reaching RON17.9 million, thanks to a solid and profitable Q2 2022. The increase was driven by a 49% increase in turnover, which reached RON16 million in the first six months of 2022. The income from the production of tangible and intangible fixed assets increased by 129%, standing at RON1.6 million lei. This increase results from the capitalization of the development team wages and reflects continued investment in the 2Performant.com platform, the report shows.
“2022 is shaping up to be a very good year for 2Performant, one in which we have adapted exceptionally well to the changing landscape and accelerated growth and the shift to profit. As you may recall, earlier this year, we updated our 2022 budget, in which we said we would be profitable as early as this year instead of 2023 (…). The best example of this is the fact that we turned a profit in the second quarter, and the growth is above the planned budget and well above the evolution of the industries in which we are active, where other players show much more modest growth, stagnation or even decreases compared to last year. These results again come on the back of a sustained effort by our team, which delivered multiple projects this quarter,” stated Dorin Boerescu, Chairman of the Board of Directors and CEO of 2Performant.
Operating revenue (revenues minus commissions owed to affiliates) increased by 34%, reaching 4 million lei in January-June 2022 compared to RON3 million in January-June 2021.
Expenses reached RON18.8 million in the first six months of 2022, up 49% on the year, but slower than operating revenue. The most significant contribution was made by other operating expenses, which amounted to RON14.6 million, up 48% on the year. This cost primarily represents commissions owed to affiliates, which increased as the business expanded. In parallel, expenses related to closing accounts that have been inactive for more than three years, as described above, were recorded as an extraordinary item. The second most significant contribution to expenses was represented by personnel expenses, which increased by 70%, reaching RON3.8 million due to the substantial increase in the number of employees (to 37 on June 30, 2022 from 31 on June 30, 2021), the report reads.
“There are signs that the e-commerce market is losing traction gained during the pandemic period. Still, in this context, we see how our gamification marketing collaboration concept delivers superior returns to our affiliates and advertisers,” added Dorin Boerescu.
2Performant continues to invest in developing a new attribution system- Big Bear, which began to contribute more and more to the achieved revenues and turnover with the launch of the self-installation implementation service in the platform and accelerating its adoption among large clients, such as Elefant, Answer, Dr.Max, EvoMag, Decathlon, BestValue, Deputat, DyFashion, Carturesti or NeaKaisa.
On the affiliate side, the company’s collaborations with banking partners continue to generate very good sales for stores active in 2P – examples are ING Bazar, Revolut, BCR Dateio, as well as collaborations with cashback (Bonusway, Cashclub), price comparison sites, coupon sites (Cuponeria.ro, Kuplio, Picodi, etc.), Google CSS premium partners (Tidy Shopping, Glew Solutions, Kelkoo, etc.), commercial content generators, product aggregators or traditional publishers.
In the first six months of 2022, 2Performant registered 19,300 unique users within its own platform, a significant increase of 62% compared to the same period last year. The 19,300 users sent 39.2 million clicks to 2Performant’s online stores, resulting in a total of almost 801K online sales, with a value of EUR42 million, excluding VAT and which generated commissions of EUR2.6 million, up 44% compared to the first half of 2021.
The first half of 2022 exceeded initial estimates, but the company’s management maintains a cautiously optimistic attitude due to economic uncertainties and the war in Ukraine. Consequently, the company keeps its early-year forecasts and targets a turnover of RON34.9 million, up 35% compared to 2021.