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 the first quarter of 2023 together with comparable data:
the consolidated estimated sales revenues amounted to PLN 3.219 thousand, compared to PLN 4.183 thousand in the first quarter of 2022, a decrease of PLN 964 thousand, i.e., 23% compared to the comparable period,
the consolidated estimated EBIT amounted to a profit of 8.420 thousand, against a loss of PLN 7.405 thousand in the first quarter of 2022,
– consolidated estimated EBIT adjusted for the cost of the incentive program as well as depreciation and amortization (adjusted EBITDA) amounted to a loss of PLN 12.044 thousand against a loss of PLN 6.760 thousand in the first quarter of 2022, an increase in loss of PLN 5.284 thousand, i.e., 78%, compared to the comparable period.
The most significant impact on the change in the Group’s consolidated EBIT in the first quarter of 2023 was:
i. recognition of incentive program costs using cash-settled share-based payment transactions in the total amount of PLN -24.826 thousand, in accordance with IFRS 2. The increase in RSU costs resulting from the recognition in the reporting period of the estimated amount of RSUs vested in the first quarter of 2023 amounted to PLN 781 thousand, while the value of PLN -25.607 thousand represents the difference in the valuation of RSUs as of the balance sheet date of March 31, 2023 relative to the valuation as of December 31, 2022;
ii. 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 3.485 thousand, or 42% compared to the comparable period;
iii. recognition of incentive program costs using equity-settled share-based payment transactions in the total amount of PLN 3.224 thousand, in accordance with IFRS 2;
iv. a decrease in sales revenue amounting to PLN 964 thousand, or 23% compared to the comparable period;
v. an increase in the cost of other third-party services by PLN 641 thousand, related to the development and growing scale of the Group’s operations, or 30% compared to the comparable period;
vi. an increase in depreciation and amortization costs by PLN 494 thousand due to the release of new versions of DataWalk software, or 77% compared to the comparable period.
The Executive Board decided to present an additional indicator in the form of EBITDA 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.
The presented financial results are estimates obtained while preparing the financial statements. Consequently, the values indicated in this current report might change. Publication of the interim report will take place on May 18, 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 the first quarter of 2023, which was particularly affected by the changes in sales revenues and operating expenses of the Group described above.
