The Executive Board of DataWalk S.A., with its registered seat in Wrocław, Poland (“Company,” “Issuer”), reports estimated selected financial data for the Data Walk Capital Group (“Group”) for 2022 together with comparable data:
– the consolidated estimated sales revenues amounted to PLN 33 350 thousand, compared to PLN 30 780 thousand in 2021, an increase of PLN 2.570 thousand, i.e., 8% compared to the comparable period,
– the consolidated estimated EBIT amounted to a loss of 129.494 thousand, against a loss of PLN 5.665 thousand in 2021, an increase in loss of 123.828 thousand, i.e., 2.186% compared to the comparable period,
– consolidated estimated EBIT adjusted for the cost of the incentive program (adjusted EBIT) amounted to a loss of PLN 32.155 thousand against a loss of PLN 5.665 thousand in 2021, an increase in loss of PLN 26.490 thousand, i.e., 468%, compared to the comparable period.
The most significant impact on the change in the Group’s consolidated EBIT in 2022 was:
i. recognition of incentive program costs using cash-settled share-based payment transactions in the total amount of PLN 68.457 thousand, in accordance with IFRS 2,
ii. recognition of incentive program costs using equity-settled share-based payment transactions in the total amount of PLN 28.882 thousand, in accordance with IFRS 2,
iii. an increase in the costs of salaries and external services related to the development and growing scale of the Group’s operations, both in the area of increasing the number of specialists in engineering, solution design, and sales, as well as ongoing processes related to international commercialization, amounting to PLN 13.026 thousand, or 53% compared to the comparable period,
iv. an increase in the cost of other third-party services by PLN 7.579 thousand, related to the development and growing scale of the Group’s operations (84% compared to the comparable period),
v. intangible asset impairment write-off amounting to PLN 5.205 thousand, in accordance with IAS 36,
vi. an increase in sales revenue amounting to PLN 2.570 thousand, or 8% compared to the comparable period.
The Executive Board decided to present an additional indicator in the form of EBIT adjusted for the costs of the incentive program both due to the materiality of this item in the total operating result and due to the future and contingent nature of the liability resulting from the implementation of the incentive program, as well as the fact that the recognized costs are currently of a non-cash nature and have no impact on the current financial position of the Issuer and the Group.
Since the revenue growth rate achieved in 2022 differed significantly from the assumptions used in the 2021 impairment tests, the Management Board revised the assumptions used in the impairment tests of intangible assets. Based on the prudence principle, the impairment test of intangible assets assumed only the planned revenue from the current version of the software and the customer portfolio as of December 31, 2022. As a result of the tests for 2022, the Management Board decided to recognize an impairment loss on intangible assets allocated to the cash-generating unit responsible for the creation and development of the DataWalk platform and the sale of DataWalk software licenses, which is part of the DataWalk S.A. operating segment, in the total amount of PLN 5,205 thousand.
The impairment write-off was recognized in the Company’s standalone financial statements and the Group’s consolidated financial statements for 2022 under “Other operating expenses,” and thus affects the operating result and the value of such balance sheet items as “Goodwill” and “Intangible assets.”
The above operation is non-cash and does not affect the Issuer and the Group’s current financial situation.
The presented financial results are estimates obtained while preparing the financial statements. The Issuer indicates that the financial statements are the subject of an audit by an independent statutory auditor and, consequently, might change due to an audit. The periodic report regarding the final 2022 Financial Statement will be published on April 13, 2023.
In the event of significant changes to the data mentioned above, the Issuer will submit a separate current report by applicable regulations.
The above information complies with the requirements of Art. 7 item 1 MAR due to significant, in the opinion of the Company’s Executive Board, changes relative to the comparable period recorded in terms of the consolidated operating result generated by the Group in 2022, which was particularly affected by the changes in sales revenues and operating expenses of the Group described above.
