Performance marketing network Tradedoubler has released its year-end report for 2014, revealing net sales of SEK 1,753 million (£138 million) for the period.
Gross profit dropped from SEK 455 million (£36 million) in 2013 to SEK 379 million (£30 million) for last year, with gross margin coming in at 22.0%, compared to 21.7% in 2013.
Despite this, president and CEO Matthias Stadelmeyer said the company was in good stead to drive much smarter results for clients this year.
Stadelmeyer and CFO Tomas Ljunglöf presented the report during a live teleconference this morning, discussing both operational and financial updates, in addition to the company’s new corporate strategy.
Net sales for Q4 were SEK 462 million (£35 million), lower than the SEK 504 million (£40 million) for the same period last year, marking a decrease of 13% currency adjusted.
Tradedoubler reported gross margin at 20.8%, down from 22.7%, and gross profit was SEK 96 million (£7.5 million), down from SEK 115 million - a decrease of 20% after currency adjustments.
The company claims that more than half of the decline is related to two large pan-European customers leaving Tradedoubler and reductions in non-core business.
Looking ahead, the company’s new strategy will comprise of “significant investments”, including the recruitment of an additional 25 developers - a process which is already underway.
New developments include the recent acquisition of German technology company Adnologies and the closure of the company’s Oslo office, which the network said came at a small cost.
The business also saw the completion of its the senior management team, with Bertil Lundell joining Tradedoubler earlier this year as chief technical officer.
“During this quarter we have increased operational efficiency to improve profitability and stabilise revenue,” said CEO Stadelmeyer.
“The acquisition of the independent German technology company Adnologies is another important step in the development of our strategy as their product portfolio perfectly complements our own.
“We are making good progress on our journey to become the leader in generating smarter performance marketing results for our clients through traffic, technology and expertise.”