2Performant aims for a turnover of over 25.5 million lei for 2021, up 26% compared to 2020

The technology company 2Performant, the leader of the Romanian affiliate marketing market, now listed on the AeRO market of the BSE (stock symbol 2P), has approved this year’s revenue and expenditure budget at its April 23rd General Meeting of Shareholders. According to it, the company is aiming for 25.58 million lei in turnover, 26% more compared to 2020.

After having reached 20.28 million lei in turnover in 2020, 31% higher than in 2019, the forecast for 2021 marks yet another year of accelerated growth for the company. 2020 was the best year in company history, with financial results that exceeded the business plan. Also, the 2Performant.com technology platform has brokered over 1 million sales worth over 50 million euros last year, for the almost 800 online stores on the platform. At the same time, 3.445 digital specialists and entrepreneurs, affiliates of the 2Performant.com platform, have earned 3.4 million euros from commissions through 2Performant, in 2020.

“In 2020 we have confirmed 2Performant’s growth potential and, for 2021, we aim to continue growing the business at an accelerated pace and to lay the foundations for expansion to foreign markets, where we have a lot of opportunities. Romania is one of the markets with the highest growth rate in online commerce, and 2Performant will continue to capitalize on this trend through increases of over 20% in 2021 and the coming years, on the local market. At the same time, starting with 2021, we’re aiming for a 65% annual increase in revenues from foreign markets, so that at the end of 2025 they will account for 30% of 2Performant’s total revenues.”, said Dorin Boerescu, 2Performant CEO and Chairman of the Board.

At its April GMS, the company agreed, based on the financial results of 2020, to grant free shares to its shareholders at a ratio of 4 free shares per 1 share held, through a share capital increase in the maximum amount of 495,970.4 lei. The granting of free shares will be finalized after the completion of the share capital increase operation through cash contribution so that the investors who will participate in the capital increase will also benefit from free shares. 2Performant intends to grant free shares in the coming years as well.

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2Performant’s 2021 investment budget, approved following the shareholders’ vote, is aimed at 3 major business initiatives through which the technology company will consolidate and grow not only in the markets where it already holds a strong position (Romania and Bulgaria) but also in new markets. These initiatives have already been initiated within the company and will be accelerated by the capital increase through cash contribution that 2Performant is currently preparing.

The first investment is aimed at developing strategic partnerships with important online commerce and affiliate marketing players, such as regional, European, or global affiliate networks and brands, with high traction in online commerce. In 2021 2Performant will expand its collaboration with Tradedoubler, an affiliate network with a regional presence, and will be developing new partnerships through which the company will bring international customers to the platform. They will help increase the company’s revenue from these foreign markets by 65% annually and have the potential to open new markets for the technology company. For the 2021-2022 period, the capital allocated for these partnerships, from the capital increase, is 2 million lei.

Secondly, 2Performant is carrying out a series of growth projects on the Romanian and Bulgarian markets through the affiliate marketing product. They aim to increase the sales volume generated by the existing users of the 2Performant.com platform, but also to attract new users. These projects will contribute to sustaining an estimated revenue growth rate of over 20% on the Romanian market in 2021 and the coming years. The capital allocated from the capital increase for this development direction is 1.5 million lei.

The third investment direction aims at allocating 1.5 million lei for a project to develop a new way of assigning conversions from the 2Performant.com platform. This decision comes amid the announcement made by browsers that they will intensify restrictions on cookies, a key element in assigning sales made by 2Performant affiliates for the online stores. The 2Performant Research & Development team is generating a new conversion allocation solution to secure user and 2Performant revenue.

These significant investments made in 2021 and then in 2022, with the role of growing the business and capitalizing on new opportunities, will negatively affect the company’s profitability during this period, whereas starting in 2023 an increase in profitability is forecast as a result of the business scaling.

At the annual company GMS, the 2Performant shareholders have also approved the company’s option to issue bonds worth up to 15 million lei over the 2021-2022 period. In this way, the company will be able to take advantage of the acquisition opportunities that exist in the markets in which it operates.

2Performant shareholders have also approved the stock option program for the company’s team, a program that will run for the next two years and which is contingent on achieving certain performance indicators. Stock option programs are a common practice in tech companies globally because they support attracting, motivating, and retaining talent in this highly competitive sector of the labor market.