Better Collective to slow US investment with new approach to costs
Better Collective's Q3 revenue was up 31.4% to €59.7m. Europe and rest of the world segment brought in €42.9m, up from €31.0m the year before. In the US, revenue grew by 16. 7% and the company will slow its US investment. The business will focus on scalability and pragmatic cost focus. It will also focus more on operational leverage.
Revenue-share deals became the largest portion of Better Collective's overall revenue, bringing in €25.0m. Cost-per-acquisition deals remained flat bringing €23.4m, almost exactly the same as a year earlier. Subscription revenue grew to €4.5m and other revenue by 72.1%. Chief executive Jesper Søgaard is excited about the rise of US revenue-sharing agreements.
Better Collective reported an operating profit before amortisation and special items of €13.9m in Q3 of 2021. The business paid €21.7m for direct revenue costs, up 39.1%, €17.3m on staff costs and €623,000 on depreciation.
