2Performant (BVB: 2P), a technology company and the leader of the affiliate marketing market in Romania, post a turnover of 23.7 million lei in the first nine months of the year, up 43% compared to the same period last year.
The net result, the recorded loss, was 1.3 million lei in the first nine months of 2022, compared to a loss of 1.6 million lei in the first nine months of 2021.
“Considering the complicated year, we are pleased that this is the third quarter this year in which we have delivered the results we promised to investors, which we have been doing since the company’s listing in December 2020. At the same time, compared to the budget for 2022 approved in the annual GSM, we recorded a 5% higher turnover in the first nine months and a 24% lower loss than expected, which was 1.3 million lei, compared to a loss of 1.6 million lei. Considering the very good results of the first three quarters, we continue to look confidently at the estimated target for the entire year – the transition to profit. Still, the context of the eCommerce and digital marketing market is very different from that of previous years and urges us to be cautious. Although we have several scenarios lined up that depend on changes in consumer behavior, we do not rule out a slight slowdown in 2P growth in Q4. Even so, we are still confident that in 2022 we will be profitable, one year earlier than we estimated in the December 2020 listing memorandum,” stated Dorin Boerescu, Chairman of the Board of Directors and CEO of 2Performant.
2Performant Network’s operating revenues increased by 50% in the first nine months of 2022 compared to last year’s period, reaching 26.6 million lei. In the general inflationary context, the turnover of 2Performant increased in Q3 2022 by 32%, reaching 7.7 million lei. This led to a 23.7 million lei turnover, a 43% increase. Income from the production of tangible and intangible assets increased by 129%, reaching 2.5 million lei. This increase results from leveraging development team salaries and reflects the continued investments in the 2Performant.com platform.
In terms of revenue by type of products, affiliate marketing contributed almost entirely to this figure. The product increased by 43%, reaching 23.6 million lei, amid a 51% increase in unique users from the platform. The influencer marketing product decreased by 24% in the first nine months of 2022 compared to the same period in 2021, reaching 107 thousand lei due to the company’s decision to stop focusing on this product line. Operating income (revenue minus commissions owed to affiliates) increased by 33%, reaching 6 million lei in the first nine months of the year, compared to 4.5 million lei in 2021.
“All our efforts to develop the affiliate marketing market are paying off. In the first nine months of 2022, we registered 22,613 unique users within our platform, a 51% increase compared to last year, sending 59.5 million clicks to online stores in 2Performant. These clicks resulted in a total of 1.3 million online sales, with a value of 66.3 million euros, excluding VAT, and generated commissions of 4.4 million euros, up 47% compared to the first nine months of 2021. In addition, the fourth quarter of the year is the most dynamic and important for the eCommerce sector, but also for our company, which includes both Black Friday and Christmas. As far as we are concerned, we are prepared both from the point of view of the technical infrastructure and platform to deal with the high volume of traffic and usage that we expect during this period,” added Dorin Boerescu.
This year, the most important project of 2Performant is the Business League, the first decentralized marketing competition for the eCommerce sector, with the number of sales generated as the main criterion. The competition has two sections – a team section, where stores must recruit and motivate the right affiliates to receive the most sales, and an individual section, where affiliates compete. The latter, in turn, must choose their teams and the right strategy to generate as many sales as possible and win one of the many prizes of thousands of euros up for grabs and the title of the best performance marketer in 2Performant.
Another significant project for the company is adopting the upgrade to the attribution system – Big Bear – which is currently used by more than 216 stores, contributing more than 6.8% to the number of sales from the entire ecosystem. Also, to streamline the receipts of prepaid clients, 2Performant launched the Direct Debit option on November 7, 2022, through which stores can automate the loading of their 2Performant accounts. Thus, the stores have constantly secured budgets for affiliates directly proportional to the sales generated through this option.
In the first nine months of 2022, the primary user category of the 2Performant platform was the affiliates, which numbered 20,624 users, up 44.9% compared to the same period in 2021. The 2Performant platform continues to be heavily used by users, generating 9,077,273 impressions of the platform. The top product categories sold in the third quarter of 2022 were: Fashion, Books & Movies & Music, Pharmaceuticals, Home & Garden, Beauty, Electronics IT&C, Toys & Baby Products, Sports & Outdoors, Telecommunications, and Health & Personal Care.
The company updates these types of results daily on the 2Performant website at https://2performant.com/statistics/ , where trends in online purchasing behavior are displayed both at the network level and by industry.